ith property boom in India spreading across all directions, real estate business is touching a new height every day. Additionally, the growth of this sector depends on the policies adopted by the government to make investments mainly in the economic and industrial sector easier. The new stand chosen by Indian government in regard to foreign direct investment (FDI) policies has inspired confidence an increasing number of countries to make investment in Indian properties.
India has displaced the United States as the second-most suitable destination for FDI in the world. As the investment scenario is changing, India has attracted more than four times foreign investment at US$ 8.96 billion during the first half of 2006-07 fiscal, as against US$ 3.38 billion during the corresponding period of 2005-06. And this achievement is making India amongst the “dominant host countries” for FDI in Asia and the Pacific (APAC).
The positive point of view of Indian government is the key factor behind the unexpected rise of the Indian real estate market. The real estate sector is the second largest employer after agriculture sector in India. Today, this growing sector is witnessing development in all areas, such as retail, residential and commercial in metro cities of India that include Mumbai, Kolkata, Chennai and Delhi & NCR. Easier access to bank loans and higher earnings are some of the primary basis behind the sudden jump in real estate sector.
Why Invest In Indian Real Estate?
Owing to vigorous boom in real estate sector, property in India has become a dream for every potential investor who is looking forward to dig profits. All are eyeing for a share in Indian property market for a variety of reasons:
o The Indian growing economy is on a continuous rise with 8.1 per cent increase witnessed in the last financial year. The sudden boom in Indian economy increases purchasing power of its people and creates demand for real estate sector.
o India is producing an estimated number of 2 million new graduates from various universities during this year, which is creating a demand for 100 million square feet of official and industrial space.
o Fortune 500 companies are in good presence and other reputed companies will attract more companies to initiate their operational bases in India thus arising more demand for corporate space.
o Investments in real estate sector of India are paying huge dividends. More than 70 percent of investors belonging to foreign countries are making profits and another 12 percent are breaking even.Cairnhill 16