Press Release Summary = Indian real industry has been witnessing tremendous growth since the government allowed 100% foreign direct investment in the construction business from March 2005.
Press Release Body = Real estate market, which is about US$ 16 Billion at present, shall reach nearly US$ 60 Billion by the year 2010. And, approximately US$ 28 Billion of this will likely be provided by foreign investments in this sector. This information was revealed by a recent study namely \"Future of Real Estate Investment in India \" published by ASSOCHAM (Associated Chambers of Commerce and Industry of India).
The main reason behind this boom in Indian real estate industry is said to be government’s approval to allow 100% foreign direct investment (from March 2005) in this sector. Prior to this, only NRIs and people of Indian origin could invest in real estate and housing sectors in India. Experts suggest that more companies will be attracted to India in the years to come, as a large number of Fortune 500 companies are present here. Therefore, more corporate space will be required by these companies and dividends will increase for investors in this sector. At present, about 70% of foreign investors in this business are making huge profits and the rest are breaking even.
Shopping malls and controversial SEZs (Special Economic Zones) that detractors allege the government is misusing for selling prime-land at throwaway prices to large industrial houses will also attract foreign investment in this sector.
Property commentators are stunned by the manner real estate prices have almost doubled over the last three years in metropolitan cities like Delhi, Bangalore, Chennai, and Mumbai. Besides big cities, with growth of above 50%, smaller cities are also observing healthy growth in this sector. Corporate real estate rush is observed in almost every part of the country, even the cities in Himalayan region such as Mussourie, Shimla, and Dehradun aren’t untouched by this. Major companies are developing vacation homes and resorts in these cities.
As per a Research Analyst\'s view at RNCOS, who has recently researched a report on “Opportunities in Indian Housing Sector (2006-2007)\", unless there’s a revolutionary change in market conditions, flows of funds into Indian real-estate sector from foreign investors will continue for at least a couple of years from now.
Key issues and facts analyzed by “Opportunities in Indian Housing Sector (2006-2007)” report include:
- Get an insight into the trends in market performance. - Pinpoint sectors of growth and identify the driving factors. - Housing industry is promoted and supported by housing finance companies in India. - States in India will have the highest demands for the houses by the year 2010. - Key Challenges and Strategies in this sector.
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