The flexible nature of the Indian real estate has earned its appreciated value over time. In fact, the rapid growth of the Indian realty market has enhanced aspirations for good standard of living. The present scenario of India has changed the way we live, from working style to recreation.
The major factors behind the rapid growth of the real estate are the relaxed policies taken up by the Indian Government on Foreign Direct Investment. The reform measures initiating strong economic development and the easy home loan terms and conditions, followed by increase in income levels, purchasing capacity and urbanization have expanded and shaped the current Indian Real Estate Scenario. Let us take a look at the factors in detail that has boosted the growth of the property market.
Factors behind the Growth of Indian Real Estate
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The FDI policies of the government encourage increasing number of foreign countries to invest in Indian properties. India has replaced US and ranks second most preferred location for real estate investment. During the period of 2004-05 US$ India attracted over 2.38 billion while in the first half of 2005-06 fiscal the nation had over 3 times of the foreign direct investment at US$ 7.96 billion. In has now become one of the dominant host countries for FDI in Asia and Pacific (APAC).
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The positive reforms implemented by the government has also initiated the growth. The real estate has grown so vast that the industry has turned out to be the second most employer after agriculture. Real estate of all forms ranging from residential, retail to commercial are being developed in full scale in cities like Mumbai, Delhi NCR, Kolkata, Chennai and many others.
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It is estimated that India would be producing about 2 million graduates in the ensuing years that would cause demand for 100 million square feet of office and industrial space.
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The presence of world renowned Fortune 500 companies further attract other major companies to establish their operational base in the country, hence generating demand for corporate spaces.
