Real Estate Sector
The Real estate sector in India has always been part of the backbone of the economy in India. Investors did not always put their money readily in this sector.
However, this sector is one of the most favourable investment options in the country.
Buying real estate in the metropolitan area will cost a bundle which is an indicator of the popularity of the sector to this country.
For this reason, most investors have opted to shift their focus to 3-tier cities instead of the metropolitan.
The numbers of shopping malls that are emerging on a regular basis are also an indicator of the current boom of India’s real estate sector. This boom has partly been fuelled by the Indian government’s move to adopt new policies with regards to foreign direct investment (FDI).
This has seen more foreign investors buying Indian properties. This is evidently seen because India has now overtaken the US and is now the second most favored FDI destination in the world. It is now also among the most dominant host countries in Asia and the Pacific in terms of FDI.
In terms of employment, real estate is the second largest employer after agriculture in the country. All areas of the sector – retail, residential and commercial - have been experiencing steady development. More investments are also being made owing to the ease with which loans are being accessed from banks; higher earnings and standards of living among Indians has also made this possible.
Investing in real estate in the country is viable at the moment for various reasons;
» The Indian economy has been growing steadily in past years with a growth of about 8.1% being witnessed in the last year.
» The number of fortune 500 countries and other large companies present in the country is bound to attract competition which will cause a rise in demand for corporate space
» Huge dividends are yielded from Indian real estate
» The country is attracting more foreign investors owing to the growing expertise in areas like auto-components, pharmaceuticals, jewellery, IT etc
The current real estate boom has also attracted the attention of gangsters and mafia in the real estate field. This has prompted the Indian government to change some investment laws in the country to curb against this vice. There has never been a better time to invest in Indian real estate as it is at an all time high at the moment.
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