Factors Pushing the Growth of Indian Realty

September 12, 2007	(Be the first to rate this story!)  Loading ...
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Increasing interest rates on home loans, oversupply in development phase, and implementation of the project are some temporary dampeners for domestic property market which are further fuelled by strong fundamentals.

According to Prabhudas Lilladhar, a leading equity broking house in India, there are long-term drivers too which include good GDP growth, increasing affordability, conducive demographics, rapid urbanization, and increasing mortgage penetration, besides an improving regulatory framework.

The National Housing Bank drives the shortage of residential property at 45 million units during the 11th Five Year Plan. The urban housing shortage is determined at 22 million units, which clearly indicates towards an annual demand of 4.5 million units.

The commercial property market in India is largely benefited by a high proliferation of IT companies which are accountable for 60-70 per cent of the total demand.

As per the data showcased by Nasscom, the IT/ITes sector employs 1.63 million people. The number will grow up to 0.67 million professional by 2010. Staying in step with the demand requirements, this would involve 95-110 million sq ft by 2010.

As far as Indian retail industry is concerned, its size is believed to be $250 billion. The sector is likely to grow at the rate of 10% per annum.

News Published Under:   Real Estate India |

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