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The Indian economy has grown rapidly throughout the past 15 years, which contributed to exponential development in real estate properties across India. Based on a current article by Indian government, realty marketplace in India accounts to a whopping 11% in the National GDP. Ever wondered why there is speedy growth within this business, this case study provides a snapshot of elements which is contributing to its favor.

Population of many big cities in India has grown tremendously more than the previous decade. There is certainly a colossal demand for residential and industrial properties in Tier 1 and Tier 2 cities. A number of the Top five residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are numerous important drivers for this exceptional real estate growth and investment in India.

a) Government of India has place up a roadmap for financial reforms to step up Infrastructure development by inviting investments from domestic and international players by creating business-friendly and Investor-Friendly atmosphere. Also, easing of monetary financial policies by cutting rates of interest to produce home loans by banks to buyers effortlessly obtainable and affordable.

b) Expanding Urbanization and huge scale migration of population from rural to urban locations in search of employment, greater revenue, far better living conditions which has led to an elevated demand for residential and commercial properties within the area.

c) From an Investment standpoint, given that stocks and mutual funds are extremely volatile to marketplace situations, more people including middle-class revenue group, Non-Resident Indians are investing in real estate which provides higher returns each in Brief and Long term investments due to soaring home rates. Investment in residential properties also offers an alternative for residential purchasers a second income to supplement their month-to-month Revenue.

d) Company activity and Setting up of IT improvement Centers, BPO, large scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred growth in commercial workplace space needs. As more and more MNCs setup shop in cities it opens new lines for all round growth & investment in real estate business. These industries bring lot of job possibilities in to the system. More jobs means rising revenue levels, elevated purchasing power for property purchasers which is also another factor for real estate investment and development.

e) State Governments in India have given green signal to develop residential townships, commercial centers, shopping malls near Industrial hubs, IT hotspots inviting both domestic and international investments for Constructing Connectivity bridges, state roadways, rail networks to ease the commuting traffic. Several big residential and commercial projects have sprung up to cater towards the growing housing demand for real estate.

f) Augmenting the real estate growth are government policies in the pipeline to allow FDI (foreign direct investment) in retail, insurance, healthcare sectors from the economy which will likely see the real estate development and investment opportunities in India for several years to come.

References:

Real estate Regulatory Authority of India
Real estate Regulatory Authority of India