With
property boom spreading in all directions, real estate in India is
touching new heights. However, the growth also depends
on the policies adopted by the government to facilitate investments
mainly in the economic and industrial sector. The new stand adopted
by Indian government regarding foreign direct investment (FDI) policies
has encouraged an increasing number of countries to invest in Indian
Properties.
India has displaced US as the second-most favored destination for
FDI in the world. As the investment scenario in India changes, India
which has attracted more than three times foreign investment at
US$ 7.96 billion during the first half of 2005-06 fiscal, as against
US$ 2.38 billion during the corresponding period of 2004-05, making
India amongst the "dominant host countries" for FDI in
Asia and the Pacific (APAC).
The positive outlook of Indian government is the key factor behind
the sudden rise of the Indian Real Estate sector - the second largest
employer after agriculture in India. This budding sector is today
witnessing development in all area such as - residential, retail
and commercial in metros of India such as Mumbai, Delhi & NCR,
Kolkata and Chennai. Easier access to bank loans and higher earnings
are some of the pivotal reasons behind the sudden jump in Indian
real estate.
Why Invest In Indian Real Estate?
Flying high on the wings of booming real estate, property in India
has become a dream for every potential investor looking forward
to dig profits. All are eyeing Indian property market for a wide
variety of reasons:
It’s ever growing economy which is on a continuous rise with
8.1 percent increase witnessed in the last financial year. The boom
in economy increases purchasing power of its people and creates
demand for real estate sector.
India is going to produce an estimated 2 million new graduates
from various Indian universities during this year, creating demand
for 100 million square feet of office and industrial space.
Presence of a large number of Fortune 500 and other reputed companies
will attract more companies to initiate their operational bases
in India thus creating more demand for corporate space.
Real estate investments in India yield huge dividends. 70 percent
of foreign investors in India are making profits and another 12
percent are breaking even.
Apart from IT, ITES and Business Process Outsourcing (BPO) India
has shown its expertise in sectors like auto-components, chemicals,
apparels, pharmaceuticals and jewellery where it can match the best
in the world. These positive attributes of India is definitely going
to attract more foreign investors in the near future.
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