Growth of Real Estate

Real estate industry in India is trying to take out itself from the economic downfall it faced in last year, and it has shown symptoms of tremendous growth in coming year. This industry is currently divided into many layers. The major count of the industry is from the unorganized real estate contractors. However the ten percent of the industries contribution come from the top ten players. Everyday there is a new name getting added to the industry that caters to the need of the current economic conditions and consumer preferences. 

As there is an improvement noticed in the stock market, approximately 6-7 companies will join this sector.

Real estate units are looking to get some new ways to finance their new projects. Now a days in order to cut down the risk factors of increasing debt and interest expenses, real estate units are looking for other financial options such as qualified institutional payments. Also with it, they are concentrating at making the private equity investments at project levels rather than company levels.

Government is also taking initiatives to give some benefit to the real estate construction industry. The Government of India is taking measures to get some best possible ways how they can allow the foreign investors to invest in the real estate market. To increase the foreign direct investments, government is making the easier rules for foreign investors to invest in smaller real estate projects. The government has given full exemption to prefabricated products manufactured at sites in its 2009 annual budget.

With all these measures, the approximate size of the real estate construction industry in India is estimated to be approximately US$44 billion. With the same measures the industry is expecting an annual average growth rate of approximately 26 percent till 2014.