In India's fast-growing economy, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. The real estate sector will continue to derive its growth from the booming IT sector, since an estimated 70 per cent of the new construction is for the IT sector,"a report by Pricewaterhouse Coopers has said.
India, like many other parts of the world is witnessing an unprecented boom in the real estate sector. In India there is a real estate boom in any direction you wish to see. Whether it is Bangalore, Pune, Calcutta or Chennai or Hyderabad or even already sky high Mumbai and Delhi - the story is the same.
Now apartments are more than just houses. They are about lifestyle. So while the first housing colonies had nothing but a security guard, these new housing colonies have a gym (spa, jacuzzi, steam), swimming pool (heated, lined with Italian marble).
The development of real estate in India focuses on two primary areas: retail and residential.
The global real-estate consulting group Knight Frank has ranked India 5th in the list of 30 emerging retail markets and predicted an impressive 20 per cent growth rate for the organized retail segment by 2010.
The organized segment is expected to grow from a mere 2 per cent to 20 per cent by the end of the decade, it said.
The boom is also attracting interest from foreign players. In recent years, non-resident Indians (NRIs) have played a very important role in transforming the Indian real estate market. Opening-up of the Indian economy provided them with new opportunities and they have shown a great deal of confidence in the changed set up. Since 1994, NRIs have invested a sizeable amount, of which a big chunk has found its way into the property market. Participation by NRIs has brought about a lot of maturity in the market which in the past had solely banked on the actual users.
Overall, the year ahead promises to be a good one for all those involved in the industry- the builders, as well as the consumers.
The future of India is set to usher in the gold rush of realty.