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

Population of numerous huge cities in India has grown tremendously over the previous decade. There's a colossal demand for residential and industrial properties in Tier 1 and Tier 2 cities. Some of the Best 5 residential cities in India are Delhi-NCR, Mumbai, Bangalore, Chennai and Pune. There are many key 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 rates of interest to create residence loans by banks to purchasers easily obtainable and cost-effective.

b) Growing Urbanization and large scale migration of population from rural to urban places in search of employment, higher earnings, far better living circumstances which has led to an elevated demand for residential and commercial properties inside the area.

c) From an Investment standpoint, given that stocks and mutual funds are very volatile to marketplace situations, a lot more people which includes middle-class earnings group, Non-Resident Indians are investing in real estate which offers higher returns both in Brief and Extended term investments due to soaring home prices. Investment in residential properties also offers an choice for residential buyers a second revenue to supplement their month-to-month Income.

d) Business activity and Setting up of IT improvement Centers, BPO, big scale manufacturing units in automobile and Engineering Sectors by multinationals has spurred growth in commercial office space specifications. As increasingly more MNCs setup shop in cities it opens new lines for overall growth & investment in real estate market. These industries bring lot of job possibilities in for the system. More jobs means rising earnings levels, elevated purchasing power for house 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, 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. Many big residential and industrial projects have sprung up to cater for the growing housing demand for real estate.

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

References:

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