The Indian real estate sector is witnessing increasing growth in the last couple of decades and also one of the fastest growing sectors in the country, which in turn attract investors from around the world to invest in India growing most real estate markets such as Chennai, Bangalore, Hyderabad, Mumbai, Gurgaon and so on. This enhance the growth is due to several factors such as rising income levels among the growing middle class, the nuclearization of families, home loans easily and demographic changes of home buyers (the average age a new owner in 2006 was 32 years compared with 45 years a decade ago.

A growing Indian economy has created huge demand for commercial property in the country to meet the needs of office space for one of the leading companies, multinationals, IT / ITES sector and organized retail. The Indian organized retail itself is likely to acquire 220 million sq.ft. for 2010 through pan-India is not just limited to cities alone top.

With an increase in demand in real estate in India, there are a large number of real estate agents have entered the segment of real estate in the country. Demand for office space is growing at a CAGR of 13% on all India basis.

Key regulatory developments
The key regulatory developments in the country are listed below that lights up the momentum of growth in Indian real estate market:
• Foreign investors are allowed to invest in commercial real estate developments across the country with a minimum built up area of 50000 million sq.ft area and minimum threshold for foreign direct investment in integrated townships reduced to 25 Acres 100 acres .

• Securities & Exchange Board of India (SEBI) has allowed the Indian venture capital firms to invest in real estate.

• In the automatic route, 100% foreign direct investment (FDI) is allowed in the construction sector.

Global Investor
Today, major global investors are exploring untapped opportunities in India’s property market with an investment amounting to U.S. $ 20 million for the year 2010. Some of the big players like JP Morgan, Merrill Lynch, Lehman Brothers, GE Capital, HSBC, the Government of Singapore Investment Corporation and a host of others. The following are some highlights in the real estate investments in the country:

• One of the world, the real estate company, Jones Lang LaSalle (JLL) plans to invest around U.S. $ 1 in India billion of real estate market.

• Dawnay Day International plans to set up a chain of four hotels starting in India with investment of U.S. worth $ 4 billion.

India • Earth Ventures (ILVL), part of the headquarters of Madrid-Americorp Group plans to invest U.S. $ 585.48 million euros in eight infrastructure projects throughout the country in the coming years.

• A unit of Deutsche Bank intends to invest more than U.S. $ 1 More than three million years in the Indian construction and real estate projects.

• Global real estate major, as Dubai World, Trump Organization of U.S., Smart City of Dubai and others have huge real estate development plans with an investment of U.S. worth $ 20-25 billion over the next few years throughout the country.

Real Estate
India leading property developers have big plans in real estate development in the country as:

• Golden Gate Properties plans to invest U.S. $ 437 More than 2 million years in residential projects in Bangalore and Hyderabad.
• Puravankara plans to build affordable housing projects in Bangalore, Chennai, Hyderabad, Coimbatore and Mysore in built-up area of 59.80 million sq.ft is composed of 64,500 households over the next five years.

• Mukesh Ambani, Reliance Industries has announced a partnership led 50-50 with United States-based real estate investment trust Vornado collectively U.S. invest $ 500 million in a shopping mall.

• Bombay Dyeing plans to invest U.S. $ 218.82 in Mumbai for the construction of homes and commercial properties at 800,000 square feet of land.

Conclusion
Therefore, the Indian real estate has become a hot choice for global investors with FDI inflows amounting to U.S. $ 25 U.S. $ 28 million investment. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), India’s real estate industry is worth around U.S. $ 12 billion and is expected to reach U.S. $ 60 billion for the year 2010, growing faster at 30 percent annually. Therefore, in India that real estate developers are raising billions of rupees through initial public offerings (IPOs) in India.

Tags: Indian Property Market

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