Many are of the view that Indian real estate industry is in an unpredictable growth. In fact, a little while ago the industry was in a slump due to the recession that has swept across the world.So far as the Indian property market is concerned,the slump was only a transient phenomenon. Now, the market is back in the saddle and the real estate scenario is agog with deals and talks.And the new climate augurs well for the prospective investors.Reportedly,in the preceding quarter the price of prime commercial property in the metros and main cities across India has registered on an average 10 percent increase which is by and large a welcome change after months of recessionary market.Alongside, residential property market in the lower and middle income level sector has shown a marked increase in demand.Investment analysts and industry veterans are savvy as to a sustainable growth in the market in the coming future.
In order to arrive at any conclusion as to whether the Indian real estate industry is in an unpredictable growth or not, we need to appreciate facts in a wider perspective. Arguably,there is an overall growth in the property sector across India. The contention is as to whether or not this growth is susceptible to the vicissitudes and vagaries of market conditions in an unpredictable way.While we consider the strengths of the real estate market, we have to take into account the emergence of India as a major consumer market in the world.Necessarily,of late there is higher concentration of multinational corporate operations in India than ever before.Inevitably,this acts as major catalyst for a higher demand for both commercial and residential properties in India now.
Whether the Indian real estate industry is in an unpredictable growth or not is a matter to be analyzed vis-à-vis the findings of industry experts and economic analysts.Industry veterans are sanguine to hold that the real estate Indian industry is poised for great strides in the coming future. Reportedly, the industry is undergoing a metamorphosis. Sector-specific and macro-economic factors are the contributory elements in this growth phase. Jones Lang LaSalle, the world-renowned real estate analyst categorically maintains: 'economic recovery during CY 2010-11 is likely to reinvigorate the interest of foreign investors in India's real estate market. We expect enhanced capital inflow in the real estate sector in the medium-to-long-term'. Further, the International Monetary Fund has reported that while the advanced economies of the world will register an average 3.8 percent retrogressive growth in the coming years, India and China will record an average growth of 5.4 per cent. This growth in the national income will directly sustain the growth in the real estate industry.
