High Demand Pushes Realty Growth in India

November 5, 2007	(1 votes, average: 4 out of 5)  Loading ...
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Indian property market is making rapid strides. However, the credit also goes to the government which has been taking several initiatives to draft new policies in order to push investments in the sector. It includes liberalization of foreign direct investment (FDI) in real estate and introduction of the SEZ Act.

The government allocated a whopping Rs 50,000 crore under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to improve urban infrastructure in 63 cities.

Taking a look at commercial property in India, it is looked upon as the key driver with the IT/ITes sector accounting for 75% of the total property demand.

A high proportion of supply of IT/ITes space will come from the development of Special Economic Zones (SEZs). The available space in these tech-enclaves is likely to reduce the appeal of STPIs, as both builders and occupiers will enjoy substantial tax benefits within SEZs.

No far behind is the Indian residential property market, which accounts for 75-80% of the total turnover of the entire real estate in India. As such, there is a shortage of 24.7 million houses in India.

Currently, private property developers are largely focusing on constructing housing units for middle class and poor. Rising disposable income and the trend towards nuclear families are the significant factors pushing the demand for residential properties in the country. <.p>

So far, the situation in both the commercial and residential market has been based on the built and sold. With increasing supply, developers became meticulous about factors such as location and start targeting the segments for which they develop. Amidst a supply-rich environment, accurate demand estimates will become highly important.

News Published Under:   Real Estate Trends |

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