News & Views on Indian Real Estate

Wednesday, November 21, 2007

5 reasons as to why Indian Real Estate boom is here to stay.

Despite the slowdown in other real estate markets around the world, Indian Real estate growth is likely to continue its healthy run for the years to come. According to an expert article on the Internet, (Indian) real estate industry is booming and can only flourish.

1. The rapid urbanization of Indian cities (2.5% per year) has lead to an estimated shortfall of 20 million accommodation units. Therefore, requirement for residential realty will continue.

2. A booming economy and liberalized Foreign Direct Investments (FDI) regime in India is seen as a great investment opportunity by global investors. Economy growth rate in the 1st quarter was 9.3% against 9.4% last year. 475 billion dollars which is required in the next five years to upgrade its infrastructure is very much possible

3. India’s legal system is considered stronger and safer than that in certain emerging markets. This has drawn the heavy weight investors to India.

4. India has a young profile today. Half of its population is under 25 years and the country’s median age is 24 years. With a young consumer base with rising disposable incomes means higher demands generated towards lifestyle products including real estate.

5. Presence of a large number of Fortune 500 and other reputed companies will attract more companies to initiate their operational bases in India, thus, creating more demand for corporate space.