The Indian real estate sector is expected to touch skyline in near term. So the Indian government is attracting global investors to invest in the country’s thriving real estate sector.
At 30% growth rate, the base of Indian real estate market is estimated to reach almost $90 Billion by 2015 from the current $14 Billion. The findings of a survey by the industry chamber Assocham (Associated Chambers of Commerce and Industry of India), as reported by LiveMint, suggests that this would enable continuous economic growth between 9-10%.
The survey also revealed that organized retailing in India is capable of adding $48 Billion business by 2010, which would boost demand for not less than 220 Million sq ft retail space by the same year. The expected flow for the sector by the end of 2008 is almost $10 Billion and by 2010, it is estimated to reach $15 Billion.
The survey findings had put the organized retail growth for 2006-07 at 25-30% with 25-35% capital appreciation. Domestic giants, including Reliance, Bharti, A V Birla Group and global heavyweights like Texas and Wal-Mart, have been increasingly pushed by 96% of still unorganized retail sector of India.
The Indian government is also investing heavily in infrastructure development for airports, express highways and hi-tech construction of power plants and mega-projects. Infrastructure alone is said to be worth more than US$ 400 Billion. The government’s major projects, like the Jawaharlal Nehru Urban Renewal Mission, the National Highways Development Programmes and Bharat Nirman, will revitalize the real estate business.
The survey also found that India’s global business community’s universal business travels fuelled the hospitality sector. This explains the soaring occupancy rates currently prevailing. Expansion of current hotels and setting up of new ones are expected. Private equity funds are amongst the numerous global players turning their attention to the sector. With Emaar-MGF-Accor, Hilton-DLF and Nirmal Lifestyle-Accor joint ventures, nearly 170 hotels are expected to come up across the country in the next five years.
In the opinion of a research analyst at RNCOS, “The growth in India’s real estate is occurring each day and massive demand potential exists in almost every sector, particularly in commercial, residential and retail. Behind this growth lies the favorable demographics, rise in purchasing power, availability of customer-friendly banks and housing finance companies, a dynamic real estate and reforms by the government in a bid to lure global investors”.
Related Market Research Reports:
Opportunities in Indian Housing Sector (2006-2007)
