Real Gains for Indian Real Estate

December 11, 2006	(2 votes, average: 3 out of 5)  Loading ...
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Real Estate in India has seen a tremendous positive change in the last decade. Today, Indian construction industry enjoys a substantial presence in the world and has reached to a niche where there is no going back. Escalating GDP, improving demographics, growing affordability, and rising impact of IT and ITes are some of the factors that are believed to have fuelled the growth.

The booming Indian realty sector is all set to witness a cumulative investment inflow of around $435 billion in the next approaching years, says a report by Edelweiss Securities.

Further, data showcased by known property surveys have come up with results that the country is all set to see an average annual addition of 2.3 billion sq ft in residential, 61 million sq ft in office and 25 million sq ft in retail space. This makes a total of 33% increase in total constructed area five years down the line.

There are going to be several factors that are likely to pave the way for large scale capital inflow from FDI, private equity and real estate funds. The list of features includes chunks of large scale land acquired by some known names in the real estate sector, government incentives for public private partnership models and high amount of bank finance.

The report further forecasts an estimated investment of approximately $396 billion for the housing segment alone over the next few years, with a yearly investment of $83 billion. Likewise, the expected investment for the commercial sector is for around $27 billion with an annual investment of $5 billion and retail with $13 billion (annual investment of $3 billion), resulting in a total investment of $435 billion.

Standing for 91% of the overall Indian real estate activity in India, Housing sector alone acts as the principal growth driver. The next biggest segment is commercial space, with 80% of the demand sprouting from mushrooming IT/ITes sector.

News Published Under:   Real Estate India, Delhi, Gurgaon, Bangalore |

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