The real estate market of India is becoming a
hot selling property and is attracting the attention
of real investors as they are getting huge profits
and high returns on their investments. The real
estate in India may still be a fragmented industry
with high transaction costs and an absence of
complete transparency; but it is whetting the
appetites of domestic and overseas investors.
In India, the world's second-fastest-growing economy,
after China, changing government policies and
a focus on infrastructure are driving up the demand
for housing developments, malls and offices.
But these days, the country's $12 billion real
estate market is expanding at a 30 percent annual
rate. With the economy expected to continue growing
rapidly — the rate is about 8 percent —
and a swelling middle class with an appetite for
quality apartments, modern malls and a variety
of stores, the forecasts are rosy. Analysts at
Merrill Lynch predict that the real estate market
will grow to $90 billion in 10 years.
The participation in acquiring the property
in India is no longer game of the rich but now
with options of easy loans and payments the middle
class has also got the feel to buy property in
India. A recent report by the Chamber of Indian
Industries pointed out that globally real estate
is and should always be considered as an income-generating
asset. Indeed, real estate is an attractive investment
option, as it gives regular returns and also provides
capital appreciation. This scenario is presently
unfolding in India.
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