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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 write-up by Indian government, realty marketplace in India accounts to a whopping 11% of the National GDP. Ever wondered why there is fast development in this market, this case study provides a snapshot of aspects that's contributing to its favor.

Population of numerous huge cities in India has grown tremendously over the past decade. There is a colossal demand for residential and industrial properties in Tier 1 and Tier two cities. Some of the Best 5 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 put up a roadmap for economic reforms to step up Infrastructure improvement by inviting investments from domestic and international players by making business-friendly and Investor-Friendly atmosphere. Also, easing of monetary economic policies by cutting interest rates to make home loans by banks to buyers very easily obtainable and inexpensive.

b) Developing Urbanization and huge scale migration of population from rural to urban areas in search of employment, higher earnings, far better living situations which has led to an elevated demand for residential and industrial properties within the location.

c) From an Investment standpoint, since stocks and mutual funds are very volatile to industry circumstances, a lot more individuals which includes middle-class earnings group, Non-Resident Indians are investing in real estate which gives higher returns each in Short and Long term investments due to soaring house costs. Investment in residential properties also gives an alternative for residential buyers a second earnings to supplement their monthly Income.

d) Company activity and Setting up 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 a growing number of MNCs setup shop in cities it opens new lines for all round development & investment in real estate business. These industries bring lot of job opportunities in to the system. More jobs means rising earnings levels, elevated purchasing power for home 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, industrial centers, shopping malls near Industrial hubs, IT hotspots inviting each domestic and international investments for Constructing Connectivity bridges, state roadways, rail networks to ease the commuting traffic. Several big residential and industrial projects have sprung up to cater for the expanding housing demand for real estate.

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

References:

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