Hopes and Focus On the Indian Real Estate

Hopes and Focus On the Indian Real Estate

By siliconindia   |   Monday, November 18, 2013
The real estate domain in India has been resilient to the financial hiccups, impeding the potential growth of other sectors like the industry and services over the last few quarters. The construction and infrastructure segment has maintained the stride of expansion while optimizing on certain funnels of demands and investments. Interestingly, the real estate sector has been tremendously benefitted from the burgeoning interest of the foreign investors and the infrastructure sector has cashed upon the Public-Private Partnership model which have been prevalent and supportive in the past. Along with the expansion of the realty sector, the latest report (published by The Economic Times) advocates for further development and sites the need for immense investments in this sector over the coming years. In accord with the reports by the leading business chamber in India, the realty sector would require an investment of around $ 42 billion with the residential real estate alone, warranting $ 29 billion over the next 12 years. The Indian real estate sector has substantially grown over the last decade and today contributes around 6.3 percent to the Indian GDP. In the account of this growth, residential sector has spearheaded the expansion of realty's subsectors which span across the commercial, retail and hospitality domains. Subsequently, the need for investments in the residential sector is on the higher side as the demands for affordable housing has alarmingly risen across the tier one and two cities of the nation. In order to meet the demand, diversify the investment channels and to assist the growth trajectory, the Indian real estate sector has been gearing up to broaden its horizons in the recent past. Hence, the real estate investment trusts, eased FDI policies and an enhanced regulatory mechanism have come to aid this sector's growth prospects. The widened funding options and participation of novel investment reserves like the venture, pension and FII funds have been reassuring for this sector over the last few quarters. The real estate sector, as acknowledged by the economy, has been promising the sustenance of advance in other sectors of the economy. The development of assets around the metro regions and tier-two cities has been the foundation of manufacturing and housing needs of the manpower. The commercial real estate along with the retail and hospitality subsectors has upheld the growth for the economic activities in various sectors. The growth of this sector in the coming years is a matter of attention for the Indian economy. Captivatingly, the prospects for such a growth and the investment projections have been brightening during the present times.

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