• 30Jan

  Indian Property Market Graph 2007-2008

  India - Real Estate

  The Indian real estate sector is witnessing burgeoning growth over the past couple of decades and also one of the fastest growing sectors in the country that in turn lure investors worldwide to invest in India’s growing real estate markets like Chennai, Bangalore, Hyderabad, Gurgaon Mumbai etc. This augment in growth is due to several factors like rising income levels among growing middle class, nuclearization of families, easy home loans and changing demographics of home buyers (the average age of a new homeowner in 2006 was 32 years compared with 45 years a decade ago.

  A growing Indian economy has created huge demand for commercial property spaces in the country to meet the office space needs for a leading corporate, MNCs, IT/ITES sector and organized retail. The Indian organized retail itself is likely to acquire 220 million sq.ft. by 2010 across pan-India not limited to only top cities alone.

  With a rising demand in the Indian realty, there are a large number of international real estate players have entered the real estate segment in the country. The demand for office space is growing at a CAGR of 13% on a pan-India basis.
  Office Space Demand Projection

  Key regulatory developments
  The key regulatory developments in the country are listed below that enlightens the growth momentum in the 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 50,000 million sq.ft and Minimum area threshold for FDI in Integrated Townships reduced to 25 Acres from 100 Acres.

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

  •Under Automatic route, 100% Foreign Direct Investment (FDI) is allowed in the construction sector.
  Global Investors

  Today, the leading global investors are exploring the untapped opportunities in India’s real estate market with an investment worth of US$20 billion by 2010. Some of the big players like JP Morgan, Merrill Lynch, Lehman Brothers, GE Capital, HSBC, Government of Singapore Investment Corporation and host of others. The following are a few highlights in the real estate investments in the country:

  •One of the world’s leading global real estate firm, Jones Lang LaSalle (JLL) plans to invest around US$ 1 billion in India’s property market.

  •Dawnay Day International plans to setup a chain of four-start hotels in India with investment worth of US$ 4 billion.

  •India Land Ventures (ILVL), a part of the Madrid-headquartered Americorp Group plans to invest US$ 585.48 million in eight key infrastructure projects across the country in the upcoming years.

  •A unit of Deutsche Bank aims to invest more than US$ 1 billion over three years in Indian construction and real estate projects.

  •Global real estate majors such as Dubai World, Trump Organization of US, Smart City of Dubai and others have huge real estate development plans with an investment worth of US$20-25 billion in the upcoming years across the country.

  Real estate developments
  India’s leading real estate developers have huge plans in the real estate development activities in the country like:

  •Golden Gate Properties aims to invest US$ 437 million over 2 years in the residential projects in Bangalore and Hyderabad.

  •Puravankara plans to build affordable housing projects in Bangalore, Chennai, Hyderabad, Coimbatore and Mysore in the built-up area of 59.80 million sq.ft comprises of 64,500 homes in the next five years.

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

  •Bombay Dyeing plans to invest US$ 218.82 in Mumbai to construct both residential and commercial properties in 800,000 sq ft of land.

  Conclusion
  Thus, India real estate has become a hot pick for global investors with FDI inflows worth of US$25 to US$ 28 billion investments. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), India’s real estate sector is worth around US$12 billion and is expected to reach US$ 60 billion by 2010 i.e. growing at a brisk 30 per cent annually. So, India’s leading realty developers are raising billions of rupees through initial public offerings (IPOs) in India.

  Permanent link to this post: http://blog.theestateinfo.info/2009/01/indian-property-market-graph-2007-2008/

  Permanent link to this post: Indian Property Market Graph 2007-2008
  From the Real Estate: building, selling, buying, investing weblog

  Tags: indian economy, real estate sector

• 27Jan

  The Growth Of The Real Estate In Indian

  India - Real Estate

  The Growth of the Real Estate in India and How you can profit from it.

  Indian realty is growing at 30%, particularly in Tier II and Tier III cities. The $15 b realty market is expected to reach $ 90 b within the next 8 years. If you have proper info, you can profit from this bullish market.

  The rise of the middle class ( 500 million ), Non Resident Indians investing in Indian realty, Foreign Direct Investment entering the market, expansion of MNCs and Indian multinationals, proliferation of eduational instistutions, growth of IT, BPO, food processing & health care – all these are the factors responsible for the growth of Indian realty.

  Chandigarh, Gurgaon, Vizag, Coimbatore, Kochi, Jaipur, Nagpur are some Tier II cities witnessing unprecedented boom.

  Real estate prices are now not affordable to the common man. IT parks are proliferating and more and more MNCs are entering India. NRIs, traders, well settled doctors, lawyers, engineers are ready to spend crores for their dream lands. After purchasing these lands, they are spending 50/60 lakhs on construction. How can the common man, bereft of the much needed capital, afford houses or flats in India ? Trading is one of the reasons for the rise in prices, as a high potential nation industrialises slowly and steadily .

  Many builders have stepped in the realty sector and they are buying old houses, renovating them and selling them off at a huge profit.
  Across the length and breadth of India, real estate prices are skyrocketing, as NRIs and foreign firms fuel the demand of residential space and business. Whether you buy in South, North, West or East India, the chances of your capital appreciation is immense.

  The Indian GDP is growing at 9.1% and India has already opened up the Realty, Agri and Retail sectors. Research has it that realty can give an average return of 8%. Realty prices are doubling in some TIer I cities like Bombay, Chennai, Bangalore etc. Residential prices have gone over Rs 5000 per sq feet and commercial prices are over Rs 10000 in Tier I cities. Goldman Sachs has predicted that the top six economies of the world in 2050 will be China, USA, India, Japan, Brazil and Russia! The demand for IT space is estimated at 66 million sq feet and commercial space 15 million sq feet.

  There are three main types, flipping, speculating and investing.

  Speculating

  This is equal to the speculation in the stock market, when you buy a scrip and sell it when it rises. This is the wait and watch approach to realty investing and it requires a fairly good financial background, as you might end up owning homes before you decide to sell them. If you can identify the right property, you can make a lot of money. Speculators are on the rise, with loans becoming easier.

  Flipping

  This is the method of buying and selling properties in a short span of time. You just buy the property and when the prices go up, you sell. The advantage of Flipping is that you don’t require vast amounts of money.

  Investing

  This is the method of investing and holding on for a longish time. The long term investor always benefits in a developing market. You have to choose your right market, You can find a low market. You should buy undeveloped land and hold on for a long time. Buy cheap, sell dear is the motto. You have to do your homework properly. You will find that successful real estate investors spend a lot of hours studying graphs and charts before investing. Future is unknown and nobody can predict what will happen in a years’ time but a good investor can make an informed guess!

  By: Nicci

  Article Directory: http://www.articledashboard.com

  Permanent link to this post: http://blog.theestateinfo.info/2009/01/the-growth-of-the-real-estate-in-indian/

  Permanent link to this post: The Growth Of The Real Estate In Indian
  From the Real Estate: building, selling, buying, investing weblog

  Tags: indian multinationals, real estate in india

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