The Indian Real Estate sector along with
housing and construction sectors contribute
nearly 10% to the GDP and is the largest
employer after agriculture. The Indian
real estate sector has witnessed tremendous
growth in past few years, driven by the
following Growth Drivers:
| Housing
Sector |
|
The existing shortage
of 24.7 million units is likely
to increase to 250 million units
in next decade requiring an investment
of nearly USD 85 billion. |
|
Availability
of cheaper funds owing to low interest
rate regime and growing housing
finance industry has lead to an
increase in home ownerships. |
|
Regulatory changes like allowing
FDI in townships is contributing
to removal of barriers to land availability
and private sector participation
in housing development. |
| Commercial
Sector |
|
Returns on commercial
properties have been out-performing
other conventional means of investment.
|
|
The
impetus provided by the growing
Indian IT/ITES industry shall intensify
as it is likely to generate a demand
of 150 million sq. ft. in next 3–
4years. |
|
Shift in urban market demographics
and favourable tax regimes have
encouraged development of malls
and multiplexes, which may require
investments of USD 4 billion. |
Industrial
Sector
The
following factors are contributing
to a strong demand for developed industrial
plots and built-up spaces: |
|
Index of Industrial
Production growing at cumulative
rate of 8% in last three years and
expected industrial investments
of USD 48 billion in next three
years indicates India’s emergence
as a manufacturing hub. |
|
Large
numbers of incentives are being
offered at central and state levels
for encouraging industrial investments
in under-developed areas. |
|
Judicial activism and stronger legislations
are leading to shifting of industrial
units due to environmental concerns. |
|
Regulatory changes have been made
to facilitate development of SEZ
and industrial parks through private
sector participation. |
