Indian Property Market Rises in Appeal

July 6, 2007	(Be the first to rate this story!)  Loading ...
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For the past few years, India has been sought as an ideal hub to outsource information technology (IT); accounting for the country’s continual increasing potential in the global economy.

Pushed by high proliferation of IT companies, India’s gross domestic product is making rapid strides at the rate of 8.5 per cent. Add to this, Indian real estate market values have also got a major boost in wake of the same. Market values are witnessing a sharp rise at 30 per cent annually, particularly residential.

Other significant factors include rising incomes along with a major cultural shift. Most Indians are nowadays planning to live outside extended family homes, thus bringing another concept of multifamily housing development, a trend which has and will yield healthy returns with a sharp increase in demand.

Indian real estate has been grabbing the attention of cross border investors since the day the market has come into its development phase. This has given a further push to foreign direct investments (FDI) in India.

FDI up to 100 per cent can be put in new development and is subject to directives including minimum property size, capitalization and other standards. Corporate tax codes have been redrafted and stock market regulation has gained its buoyancy back.

The efforts of government are not going waste. They are fruitful in face of the nation’s growth. Now, no restrictive laws and increased property taxes are weighted against owners.

Other reforms such as organized regional financing and new regulations are encouraging the development of large real estate projects. However, there are still some structural constraints that are required to be looked into to let the economy develop with the same pace.

In addition to leveraging the benefits of new policies and regulations, foreign investors are advised to partner with a qualified property advisor who must have a widespread presence in India and skills to chart both entry and exit strategies, rich knowledge about knits and grits of Indian property market as well as Western business practices.

News Published Under:   Real Estate Trends |

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