Thursday, April 15, 2010

The Unknown Facts about Real Estate in India

There are many unknown facts about India Properties.In a country where there is traditionally the predominance of the agricultural sector, that sector continues to be greatest source of employment generation. It may be an unknown fact that the Indian real estate sector is the second greatest employment provider in the country. This sector significantly contributes to the national income and Gross Domestic Product and it is expected there will be an average 10% increase annually in these aspects. The recent slump in the property market in India consequent upon the global economic downturn is reported to be evening out and the industry is projected to register considerable growth in the coming years. The observation of the international property consultants Jones Lang LaSalle is significant in this context: “economic recovery during CY 2010-11 is likely to reinvigorate the interest of foreign investors in India’s real estate market. We expect enhanced capital inflow in the real estate sector in the medium-to-long-term”. Again, Jones Lang LaSalle says, the faster economic growth of the nations like India, China, Brazil and Russia will pay the way for faster recovery of the real estate sector in those countries when compared with countries like the US and the UK.

Yet another unknown fact about Indian real estate is underlying in Jones Lang LaSalle’s report which says India property market will be in an upswing from the last quarter of 2009 and over the next 5 years and the industry will attract up to US $ 12.11 billion investment. Again, an estimably 150 square feet of office space will be acquired by the IT and ITES sector alone by then year 2010. Another great procurer of office spaces will be the organized retail marketing sector. It is estimated that this sector will be in need of an additional 220 million square feet space by 2010. This growth momentum will sweep across all tier-1 and tier-2 cities. Further, a joint study conducted by Jones Lang LaSalle Meghraj and Cushman & Wakefield India in association with Shopping Centres Association of India, christened Mall Realities India 2010, says that during 2009 and 2010, a projected 100 malls of over 30 million square feet will be opened in India.

It would be an unknown fact about in real estate India, that in the construction industry Indian companies are making double the profitability for their projects when compared with their US counterparts. Indian construction firms are making on an average 18 percent profit while the US companies are making only half of that. Another unknown fact is that foreign institutional investors (FIIs) are very much confident in investing in Indian real estate and the there has been a whopping 400 percent increase in the past six months.
(ArticlesBase SC #1563721)

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