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The Indian economy has grown rapidly throughout the past 15 years, which contributed to exponential growth in real estate properties across India. Based on a recent article by Indian government, realty marketplace in India accounts to a whopping 11% from the National GDP. Ever wondered why there is certainly speedy development within this market, this case study offers a snapshot of factors that is contributing to its favor.<br /><br />Population of numerous huge cities in India has grown tremendously over the past decade. There's a colossal demand for residential and industrial properties in Tier 1 and Tier two cities. Some of the Best five residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many important drivers for this exceptional real estate growth and investment in India.<br /><br />a) Government of India has put up a roadmap for financial reforms to step up Infrastructure improvement by inviting investments from domestic and international players by producing business-friendly and Investor-Friendly atmosphere. Also, easing of monetary economic policies by cutting interest rates to make residence loans by banks to purchasers very easily available and inexpensive.<br /><br />b) Growing Urbanization and huge scale migration of population from rural to urban locations in search of employment, higher revenue, much better living conditions which has led to an increased demand for residential and industrial properties in the area.<br /><br />c) From an Investment standpoint, given that stocks and mutual funds are very volatile to market situations, a lot more individuals which includes middle-class income group, Non-Resident Indians are investing in real estate which provides high returns each in Quick and Lengthy term investments as a result of soaring house prices. Investment in residential properties also gives an option for residential buyers a second revenue to supplement their monthly Income.<br /><br />d) Business activity and Establishing of IT development Centers, BPO, huge scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred growth in commercial workplace space needs. As increasingly more MNCs setup shop in cities it opens new lines for all round growth & investment in real estate market. These industries bring lot of job opportunities in for the system. A lot more jobs means rising earnings levels, increased purchasing power for house buyers which is also another factor for real estate investment and growth.<br /><br />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 large residential and commercial projects have sprung up to cater towards the developing housing demand for real estate.<br /><br />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 that will likely see the real estate development and investment possibilities in India for several years to come.<br /><br />'''References:'''<br /><br />[http://babysaysboutique.com/real-estate-regulatory-authority-of-india/ Real estate Regulatory Authority of India]<br />[http://seco-asia.com/real-estate/ Real estate Regulatory Authority of India]

Edição atual tal como 23h51min de 9 de maio de 2015

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

Population of numerous huge cities in India has grown tremendously over the past decade. There's a colossal demand for residential and industrial properties in Tier 1 and Tier two cities. Some of the Best five residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many important drivers for this exceptional real estate growth and investment in India.

a) Government of India has put up a roadmap for financial reforms to step up Infrastructure improvement by inviting investments from domestic and international players by producing business-friendly and Investor-Friendly atmosphere. Also, easing of monetary economic policies by cutting interest rates to make residence loans by banks to purchasers very easily available and inexpensive.

b) Growing Urbanization and huge scale migration of population from rural to urban locations in search of employment, higher revenue, much better living conditions which has led to an increased demand for residential and industrial properties in the area.

c) From an Investment standpoint, given that stocks and mutual funds are very volatile to market situations, a lot more individuals which includes middle-class income group, Non-Resident Indians are investing in real estate which provides high returns each in Quick and Lengthy term investments as a result of soaring house prices. Investment in residential properties also gives an option for residential buyers a second revenue to supplement their monthly Income.

d) Business activity and Establishing of IT development Centers, BPO, huge scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred growth in commercial workplace space needs. As increasingly more MNCs setup shop in cities it opens new lines for all round growth & investment in real estate market. These industries bring lot of job opportunities in for the system. A lot more jobs means rising earnings levels, increased purchasing power for house buyers which is also another factor for real estate investment and growth.

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 large residential and commercial projects have sprung up to cater towards the developing 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 that will likely see the real estate development and investment possibilities in India for several years to come.

References:

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

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