As India has population of more than 1 billion and studies have forcasted GDP growth rate of 7.5%, Real Estate in India has very good market in the near future. The Indian real estate market has experienced a significant boost in the last ten years, with growth rates estimated by various studies at close to thirty percent per annum. The boom in the real estate of India is directly related to its booming economy. The real estate in India was always a restricted sector till the year 2005, when liberalization measures started to come into full existense. The government of India made changes significantly in its policey after 2005. The restrictitons on foreign investments in Indian real estate projects were significantly reduced. On the contrary, FDI in real estate is very much encouraged and this has enhance the accessibility of investment from foreign companies into Indian real estate.
There was a study published by Ernst and Young on Indian real estate development and its future. Various factors that drives real estate in India were analyzed. According to this study, India’s macro-economic fundamentals are quiet strong and the changing economic profile suited well for every segments of Indian industry. Real estate in India is not limited to major cities like Mumbai, Delhi, Bangalore or Chennai. But there is huge development projects going on in the suburbs or towns like Kalyan, Thane etc near these metropolitan cities. As the economy of India has been booming, people spending strength has also increased. Many home buyers are ready to spend up to 25 lakhs for 1 BHK flats in Kalyan and other adjoining suburbs of Mumbai. The study conducted by Ernst and Young also tried to understand the main drivers behind the capital flows into real estate industry in India from foreign Investors. Following are the major issues that this studey addresses: (more…)
Any real estate project involves three main groups or parties and this include production group, consumer group and a public infrastructure group. In order to get succeeded these groups need to co-operate with each other and thus benefit from cooperation and better understanding of the key values, both short and long term goals, and major limitations controlling the other groups. One of the main limitation in real estate business is the fact that all these three groups including consumer group is a cash cycle enterprise which should remain solvent in order to survive the difficult times and which must create a surplus over time to gain credibility with other groups. It is also very essential that these groups continually make a better predictions about the present and future social norms, infrastructures, technologies, and the direction of complex changes.
The real estate business has evolved a lot and it is becoming more dynamic and complex. The various activities involving in real estate business has taken different forms to meet the needs of human and the society. In the early days real estate was mostly based on the need and to some extent the custom of the people. But now thing has changed, real estate now is mostly based on social economics and statute. Today’s real estate development is very complex collective process. This processes not only accommodate an activity within the parcel, but also adapt to different context of surrounding environment involving different groups and stake holders. The political and social process to produce a real estate projects whether residential or commercial must consider a diversity of impacts to find equitable reconciliation between who pays and who gains. (more…)