A look at the India Property Market and discover why more and more investors are looking to India for their next property investment. Discover what India has to offer the astute property investor.
India has never ceases to mesmerize the westerners is beckoning like never before. From a distant developing country a decade back, the Indian tiger is roaring and is now, one of the top 5 fastest growing economies in the world. The Indian success story exemplifies the need for globalization all over the world. With Information Technology having started the trend, other crucial sectors have also now started realizing their true potential, enabling an all-round development of the country. Of course, the country is home to over 1.25 billion folks - it adds another dimension to the intrigue, that is India!
What Makes India a Hot Property Investment Destination?
It's amazing to know that a country that was once a borrower throughout its history has suddenly turned into a generous donor to the war-ravaged regions, like Afghanistan and Iraq! It's not that the economic success of the country has totally wiped out poverty from India, but certainly the booming stock markets are having a positive impact on the lives of lots of Indians.
A country, as big as India, is bound to be afflicted by problems aplenty. Be it terrorism, crime, social backwardness, lack of infrastructure to sustain the burgeoning economy, India has seen it all. However, the things are looking brighter with major developed countries showering the country with positive ratings as far as foreign investment is concerned. The country is also close to signing the Indo-US nuclear deal that will provide a de facto nuclear power status to India, without even signing the NPT.
The development of the country is catching up fast, with the successive democratic governments committing themselves to the building up of infrastructure to support several development projects all across the country. The country being largely agriculture-dependent since its independence in 1947 is shedding its tag, and now, industry and the service sector have taken over. Though the government is committed to promoting agriculture, the lure of skyrocketing real estate prices is too much to resist for the poor farmers. As a result, most farmers are resorting to selling large chunks of their land to real estate developers at unimaginable prices. This practice has resulted in rising land prices throughout major Indian cities.
The overheating of the real estate sector is actually working to the advantage of investors. This is because the purchasing power of middle class Indians (which is the largest in the world) has been on the rise, and even the financial companies and institutions are lending wholehearted support to the credit system, there is no dearth of demand for prime chunks of land.
With an economist Prime Minister at the helm, and the government committed to take India into the league of developed nations within a couple of decades, the projections and predictions are indeed quite high. Latest in the series of efforts of luring real estate investments is the much touted Special Economic Zone (SEZ) policy, that has changed the course of the real estate graph dramatically in a matter of couple of years only. With tax benefits and other incentives, both commercial and industrial houses are making a beeline for SEZ pie.
Hottest Property Investment Destinations in India
Traditionally, the metropolitan towns of New Delhi, Mumbai (formerly Bombay), Chennai (formerly Madras), and Kolkata (formerly Calcutta) have been the hotspots of investment in the country. This was understandable since the country had not seen such rip-roaring success in the real estate sector prior to this time. Moreover, domestic and foreign investors were comfortable with the idea of investing in the cities with maximum connectivity within the country with well-established air, rail and road networks in and around these four metropolitan areas.
However, things have changed dramatically, with real estate investment bursting like never before in Tier II and Tier III cities. No doubt, the reason for this surge has been the overwhelming success of Indians in the service sectors, like IT and retail.
North India boasts of Chandigarh and its peripheral towns of Panchkula, Mohali, Dera Bassi, Zirakpur, and Baddi as the hottest and costliest real estate destinations in the country. Most of the luxurious flats are in the range of Rupees 1Billion-2Billion! Land for development is available only in the peripheral areas and that too at surging prices. The northern part of the country also has the National Capital Region (NCR) covering the capital New Delhi, Faridabad, Gurgaon, and Noida as major hotspots for residential, commercial, and industrial ventures.
Western India has its own success story with states of Gujarat and Maharashtra witnessing development at the rate of zeros. The cities of Mumbai, Pune, Nagpur, Ahmedabad, Surat, and Vadodara are being developed as role model cities for the entire country. These cities are historic in every sense of the term, yet the authorities are bent upon creating a marvelous blend of traditionalism and modernity where the development is equally relished along with historical charm.
If you are looking for a holiday home then property in Goa and Kerala are the best destinations. Of course, the price will be a little on the higher side, but these southern Indian states have been traditionally the hub of tourism in the country. If you are planning to invest in the Indian Silicon Valley, i.e., Bangalooru (formerly Bangalore), think again! The real estate market is out of bounds for the average investor. Only high-end investors can even think about having a property in this ultra-glam Indian city. Chennai is another option you can explore for residential and industrial property investment.
Eastern India is still learning the ropes as far as development is concerned. Barring Kolkata, most of this Indian region has largely remained bereft of too much development. However, with industrial majors, like Posco setting up their steel plant at Bhubaneswar, things are looking up in the poor state of Orissa. If you are looking to reap long-term real estate rewards, then East India is definitely a good investment opportunity.By Les Calvert
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