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 Funds
due to
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. by 2010. |
|
Shift in urban market
demographics and
favourable tax regimes
have encouraged
development of malls
and multiplexes,
which may require
investments of USD
15 billion. |
|
Organized retail industry is likely to require an additional 220 million sq. ft. by 2010. |
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 110 billion
in next five years
indicates India’s
emergence as a manufacturing
hub. |
|
Large
numbers of fiscal 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. |
