Monday, December 31, 2012

Real Estate Future in India


Indian real estate market is expecting a big hike in the upcoming years and is expected to be of US$180 billion by 2020. With the increase in economy, there is a demand for residential, commercial and retail real estate throughout India. Also there is a steep growth in demand for hotels, malls, hospitals etc. There is also a need to improve the existing infrastructure in order to meet the demands of technology. Demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014. Also it has been noticed that Tier 1 metropolitan cities are expected to account for about 40 per cent of this.

Smaller cities are also attracting the big real estate investors. The reason for this is growth prospects and price stability. Also residential apartments are also required in smaller cities. As per the report the sale of new residential apartments in 10  smaller cities are at around US$ 4 billion in 2012. With this it is expected that almost 2 million new graduates will join the workforce, hence in order to accommodate them, there is a creating demand for 100 million square feet of office and industrial space.

With the presence of large number of Fortune 500 companies in sectors such as chemicals, apparels, pharmaceuticals and jewellery in India, there is an opportunity to attract foreign investors in India. This will again boost the real estate sector of India. 

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