The Ever Growing Indian Real Estate Sector

February 10, 2008	(Be the first to rate this story!)  Loading ...
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The Indian Real Estate Industry is on a roll be it in the country or outside. The sector has witnessed immense growth in the past couple of years. The phenomenal increase in the Real Estate demand and access to funds were the key drivers for propelling the Indian real estate market into an overdrive.

The industry received the much requisite first shot of funding in 2005 wherein the foreign direct investment (FDI) route was opened up for Indian real estate. Since then there has been no looking back, the real estate sector has transformed to reach $57 billion in 2007, and has a potential to reach $90 billion by 2012 according to the Eleventh Five Year Plan.

The ever increasing momentum has paved the way for exciting opportunities for both domestic as well as international investors. The real estate industry has multiple stakeholder’s right from developers to investors (including private equity funds), financiers, buyers (including Real Estate Investment Trusts) and service providers such as property consultants, contractors and project management companies. A typical consolidation may be triggered by any of these stakeholders.

Going forward, we expect the Indian real estate market to witness greater M&A activity driven by consolidation and the growing maturity of the market. This activity would ideally be supported by requisite regulatory framework and inherent attractiveness of the real estate sector (which in turn is based on sound market fundamentals and relatively stable economic & political regime).

News Published Under:   Real Estate India |

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