According to the Dubai-based organizers of a major realty fair in New Delhi, the Indian real estate market is expected to grow five times to $60 Billion through 2010 and further $90 Billion in next five years.
"The Indian real estate market has emerged as one of the most attractive options to invest in international markets," said Satish Khanna of Al Fajer Information and Services, the organizers of Asian Real Estate Show 2007, in news published on International Business Times.
The Indian realty market is maturing rapidly with contributions from very big domestic and international players, growing interest from investors and market-friendly attitude.
100% foreign direct investment (FDI) and venture funds coming in real estate by Government decisions will further give a push to the growing momentum generated by increasing disposable incomes and easy financing options. Investments instruments in realty market may be brought in as floating of realty mutual funds have been allowed. Due to this, industry observers believe that it will make way for setting-up of structures like Real Estate Investment Trust.
The demand and prices for land has gone up due to the move by multinational companies, especially in the IT sector, to set up base here. Besides the IT sector, special economic zones, large retail stores, and warehousing are also clamoring for commercial space.
A research analyst at RNCOS notes that India with a huge potential is a favorite destination for two reasons. First, it has a huge billion plus population creating a very big opportunity and this kind of growth will not be available in any other place in the world in commercial and residential cum retail markets. Secondly, the average rate of return on the capital in the industry is in excess of 30% and therefore not rare for local developers to get IRR (internal rate of return) of as much as 50%. This gives a clear indication that the Indian market will continue its upward march in the future.
Related Market Research Reports:
Indian Cement Industry Forecast to 2012
Opportunities in Indian Housing Sector (2006-2007)
