In the post liberalization period India has witnessed a gradual boom in the real estate market. With the development of the economic, the Indian real estate market which was otherwise traditionally an unorganized sector has now turned in to one of the thriving industries in the country. It is expected that the current market would grow from USD 14 billion to a USD 102 billion in the next 10 years. The following are some factors that are responsible for the growth of of the real estate scenario in India.
Factors Responsible for the Thriving Real Estate Scenario India
No doubt, the booming Indian economy with the growth of 8% per annum in the post liberalization period has led to the growth of the market.
India's emergence as an attractive off-shoring destination and vast reserve of highly qualified technicians and engineers is also one of the reasons behind the development of commercial and residential spaces.
The rise in amount of disposable income has led to the demand for quality residential options. The growing number of middle class with availability of easy cash has resulted construction of plush residential projects of global standards.
Favorable government policies have also led to the growth of the real estate. Relaxation of the legal rulings and the processes by the government bodies have encouraged the development of the real estate scenario.
The improvement in the infrastructure facilities is also one of the causes behind the real estate scenario.
The following are some features related to commercial and residential respectively.
Commercial
Office Spaces
backed by strong infrastructure
high demand generated by the IT industry
development focus expanding from the traditional CBDs to the secondary centres
Retail
The retail real estate segment would be witnessing 25 to 30% growth
The high demand is influenced by the favorable government policies for foreign retailers
Residential
The growth of the residential real estate segment is triggered by low cost per capita housing stock, rise in disposable income and easy availability of finance.
Presently the segment is growing at 30-35% per annum
widespread residential townships developed in large scale in both tier II and III cities
The gradual maturity of the real estate scenario of India would lead to large scale infusion of foreign investment along with involvement of best practices by global realty players.
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