Why people should invest in Indian Real Estate market?

Magicbricks.com moderator says:
Real Estate is spreading its branches in every direction, and lately the market trends have touched new heights. This kind of exponential growth has boosted the real estate market in India as well. There is a rise in the entire industrial, commercial and residential projects thus; multiplying the number of foreign investors.

As per the current real estate market trends, during the first half of the year 2005-2006, India has attracted more than three times foreign investors as of those in the US. Today, it has become the budding sector for all investment lovers. Moreover, this has turned into a possible venture, by the initiative and positive outlook of the Indian government.

Why people should invest in Indian Real Estate market?
This seems a big question mark in front of every property investor, who wanted to invest their hard earned money into it.
The most promising and the key factor for this is that, India has released some relaxed Foreign Direct Investment (FDI) rules. On the basis of which, many foreign investors have decided to create India as their new property investment land.
It has even encouraged several financial and private firms to catch hold of this ultimate opportunity to make property investments targeting the Indian Real Estate Sector.
Foreign investors can now invest in integrated townships by two means. It can be done either, through a wholly owned subsidiary or through a local partner in India. However, in the later case, it will be a joint venture between both of them.
Lot of changes has been incorporated in the investment policies.

The entire spectrum of this real estate industry in India has been created for all property buyers-sellers in order to gain maximized profits. Moreover, it has become the second largest employing sector in India. In the past few years, the Indian real estate market has witnessed a revolution. As per the emerging trends in this sector, the industry is estimated to grow at the rate of 30 percent annually over the next decade.

Demand of commercial and Residential Properties:
The rapid growth of Indian economy has had a gushing effect on both commercial as well as residential property demands. More and more commercial property is required to meet the modern business needs. Moreover, the growth in this sector, especially the commercial one is led by the outsourcing and the Information Technology (IT) industry in India. These industries acquire approximately 70percent of the property market. In the coming years IT sector is likely to grow about 35 to 40percent. If we talk about their evaluation, then commercial sector is rated as per their location, commercial viability and of course the infrastructure. These days the hot commercial property markets are in Bangalore, Mumbai, Delhi, Gurgaon and Hyderabad.

As far as the residential property matters are concerned, the Indian market constitutes approximately 80percent of the Indian real estate market and is growing rapidly. In the last two years the growth of residential sector is grown about 15 to 20 percent. Thus; as India is emerging as a common grounds for property related matters, the developers are coming up with some world class buildings including the design and architecture to attract more and more foreign and local property investors. This step proves to be significant when it is the matter current real estate as it has given new dimensions to this industry that can now be compared with the international standards.

Leading India Real Estate:   
This is a significant component of the Indian real estate market as the growing trends have boosted the property sector. Some of the vital and leading real estate funds are:
• HDFC property Fund
• India Advantage Fund (ICICI)
• Kotak Mahindra Realty Fund
• DHFL Venture Capital Fund

Steps to be taken care of before investing in any property:
These are some of the very basic steps that everyone associated with the real estate industry should know.
• The value of commercial property depends upon the businesses around it and the growth of those businesses. However, the value of residential property depends upon the location and the amenities the apartment or flat is providing you.
• Secondly, you should be well aware of the cost of arranging funds in order to manage your property.
• Last, but not the least, you have to deal with the recurring expenses, which include maintenance etc.

I’m sure there are tips other than those mentioned here. Do share them for the benefit of all real estate enthusiasts!

Comments

[buy domain names]

I just went through your post and find it more useful for the people who are related with the real estate..

[Property]

I think this is the best investment on nowadays.

[Philippines properties for sale]

I agree with your points completely. In real estate investment, just like in equity investment, one has to find a value situation or it's just not worth it. I also agree that it's arguably harder and more time consuming for investors to find that value in real estate.

Deirdre G

[Russell]

Investing in property is not a child's play. You do not only need to be the right person present at the right time at the right place, you are also required to have all the right things to take the deal to the end! I too am a property investor and still keep having regular ups and downs through the process. Being a property investor, have a huge network of friends who have helped me along the way but there are somthings even they cannot fully help me with. A good property investors companion was what i always needed and i found that! Thanks!

[realestate]

People should invest in Indian real estate for the India’s growth and development. Real state property dealer can help the people in discovering new and fine-looking house, property etc. In order to get more information regarding real estate visit this site.

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[InvestInIndia]

Good article.

[Jaypee Greens]

I like your insight on this important issue. I will be following your blog frequently.

[Real Estate India]

I completely agree, investing in real estate in india is definitely a wise investment option... especially keeping the future in mind

[riathareja]

Real estate in India is now a safe destination for potential investors. Service apartments or Fully-furnished houses are preferred choices of long-stay executives, foreigners, Non Resident Indians and other frequent travelers to India. These properties offer all the convenience of a hotel with the privacy and comfort of home. Whether the person is a business traveler or holiday maker, looking for more than just a regular hotel room, a service apartment is the cost benefit alternative. Giving people more space, more privacy and at a cheaper rate, most of these apartments can be available either for a day or for a year.For more view- realtydigest.blogspot.com

[Shelly]

The author(s) of this post is/are right in mentioning that "The rapid growth of Indian economy has had a gushing effect on both commercial as well as residential property demands."

However, the bigger truth in this aspect is that its the market speculators, monetary market players, NRIs, property dealers, etc. who have, since time and time, made the supply-demand ratio go awry, and even eccentric some of the times thereby letting the actual consumer/ home-seeker running high and dry.

Yes, there is nothing bad in investing or speculating on Realty, but going out of bounds may sometime backfire... not necessarily on the investor and/or the speculator, but unfortunately on the real consumer and the property market as a whole.

Its perhaps high time that the Government must introduce a Regulator in this unorganized industry also, somewhat similar to the lines of telecom and stock market. That will surely help the real investors and genuine home-seekers.

-Shelly Arya

[Shelly]

The author(s) of this post is/are right in mentioning that "The rapid growth of Indian economy has had a gushing effect on both commercial as well as residential property demands."

However, the bigger truth in this aspect is that its the market speculators, monetary market players, NRIs, property dealers, etc. who have, since time and time, made the supply-demand ratio go awry, and even eccentric some of the times thereby letting the actual consumer/ home-seeker running high and dry.

Yes, there is nothing bad in investing or speculating on Realty, but going out of bounds may sometime backfire... not necessarily on the investor and/or the speculator, but unfortunately on the real consumer and the property market as a whole.

Its perhaps high time that the Government must introduce a Regulator in this unorganized industry also, somewhat similar to the lines of telecom and stock market. That will surely help the real investors and genuine home-seekers.

-Shelly Arya
http://bricks-n-mortar.com