There have been and there will be immense Investment opportunities in Indian real estate industry. India is one of the fastest growing economies and emergerd as no doubt, a strong economy with its own domestic potential to grow. Naturally the strong economy boosts the real estate sector further. Further real estate companies voluntarily begins to adhere to international standards because of growing professionalism and improvement in delivering services.
The housing and real estate sector in india attracted foreign direct investment of US $ 10.6 billion since a decade and the value of investment in the sector under construction crossed US $ 100 billoin and 82% of the total capital inflows in the first half of 2011 was for the acquisition of the land showing the optimisim in the long term growth story of the sector. Comparatively commercial real estate sector is showing recovery whereas the residential housing segment is displaying a rather mixed bag. One positive note in the residential housing segment is stable in terms of prices. For instance, about 46% of the residential units launched across the country in the 2nd quarter of the calander year 2011 were in the Rs 2000- Rs 3000 per square range.
Tier-2 and Tier-3 cities witnessing strong demand, coming to metros it is estimated that since September and December 2010 there is a fall in residential launches to 31% in top eight cities. Chennai shows improve in residential activity in the last quarters, whereas NCR Delhi witnessed 48% of new launches in the 2nd quarter of calander year 2011. Home buyers are waiting for moderate correction in prices so that they are back in full sway. There is a huge demand in the middle income segment for homes in the Rs 5 to 15 lacs range. There is a enarmous business oppertunites in this segment. If approval process is fast tracked in this segment by the concerned government departments it would result in considerable cost saving for the developers.
Fiscal incentives under the income tax act is a great advantage for investors in the sector. Interest paid on home loan is eligible for deduction upto Rs 1,50,000 and the principal repayment of a loan is eligible for deduction upto Rs 100,000 presently.
The growing interest rate, lack of timely execution of projects by developers made home buyers to slowdown the process to great extent. Moreover lack of Real estate regulator, lack of urban planning etc .,are the areas where Government has to address as real estate sector forms 6.7% of india’s GDP. Considering the long term growth story of the Indian economy it can be concluded that, Investment opportunities are immense in Indian real Estate
Disclaimer: The information given above are the result of personal readings of related geniuine magazines and personal understanding of the subject matter. This is written to make the readres understand, how importance in investing in real estate sector at present scenario in india. However,this blog is not responsible for any error or inaccuracy in the same.
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