Real Estate Scenario in India

Aadi Sharma
February 12, 2010

In spite of the recent ebb in the real estate scenario,
the Indian realty market holds the 9th position among the
retail markets of the world with a consistent growth of
 30% per annum. The favorable policies of the Indian government
is the major initiator of the realty boom. In fact, the real estate
 industry in India is recorded to be second largest employer after
agriculture.

Focus is especially on the various metros like Delhi
and NCR, Mumbai, Kolkata for developing projects ranging from residential,
 retail to commercial complexes.


Why Investing in Indian Realty Market ?


    * The boom in Indian economy. In the last financial year the economy
witnessed a considerable 8.1% increase. Due to the growth, the purchasing
power of the investors has increased causing a rise in the demand for realty properties.


    * It has been estimated that there would be around 2 million graduates
from various universities. Hence, creating demand for offices and industrial
 space of over 100 million square feet.


    * The new policies adopted by the Government of India regarding FDI
(foreign direct investments) encouraging various countries to invest in
 Indian properties.


    * The property investments in India yields large dividends.
As a result of which, about 70% of the investors are churning profit.


Indian Real Estate - Attractive Destination for FDI As already mentioned,
 the positive approach of the Indian Government is the major factor behind
the growth of the Indian real estate. The following is the list of the FDI
groups that have already made their mark in the Indian realty market.List of FDI


    * Emaar MGF - The developer has invested a mammoth amount of US$1 billion.
 It has the objective of developing pan-India projects ranging from residential,
 commercial, hospitality in integrated township and SEZ.


    * Keppel Land - The Singapore based group in association with a Bangalore
 based group has signed an agreement for developing residential and commercial
buildings in the Indian Silicon City.


    * DSP Merrill Lynch, Barclays Bank and Mauritius-based TH Holdings and Group
have so far invested Rs.11, 460 crore in the construction and realty sector.


The list of foreign direct investors also includes AEA Holdings, RREEF
(real estate investment wing of Deutsche Asset Management), Capital Land,
 Royal RaJ Indian, Morgan Stanley Real Estate Fund, IREO Investment Holding,
 Carrefour, Cayman Islands and many others. Some of the locations are often
termed as "temples of new or modern India", hence reflecting the extent of
property development in India.