Commercial real estate in India has picked up
real fast over the last 5 years and has transformed the Indian architecture in a major way.
Commercial Real Estate India as a trend setter
1. A population of 1.1 billion and a workforce of 496.4 million serve a great potential for
real estate investors in India. The talent pool of intellectual capital and cost effectiveness gives India a competitive edge in the
real estate scene.
2. A growth rate of 30% and a 30% average rate of returns look lucrative for future prospects in the realty sector.
3. Latest research data estimates increase in revenue generation from $14 billion to $102 billion over the next 10 years. For NRIs investing in
real estate India. the return has been more than profitable. They feel India in this regard has not even tapped 20% of market.
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4. Moreover with the relaxation of FDI rules and tax incentives for NRI s the Government has sure encouraged in increasing foreign capital. Global investors investing in
real estate India can certainly look for a 25% ROI!
The peaks of
commercial real estate in India
o Organized retail: With the increase in mass consumption, shifting trends in the pattern of consumption of luxury goods and purchasing power corporate houses have ventured into retail in a big way. Take the case of RPG Spencer’s largest presence in South India with FoodWorld, MusicWorld and Health and Glow. Apart from this there have been other major players like Birlas, Tatas and now Reliance is thinking on similar lines. This explains the mushrooming retail projects and shopping malls.
Entertainment: The need for entertainment, fun and leisure has transformed the urban architecture with multiplexes, hotels and a
commercial real estate India boom.
o Job scenario: India not only promises better workforce in terms of intellectual capital but also cheap labor. This has welcomed thousands of IT, telecomm and ITES Companies to set up offices here in India.
Why should investors be encouraged to invest in
real estate?
According to Grant Thomton, a leading international and audit firm, India ranks number one out of 30 countries having medium-sized business beating China and Europe. Surprised? Think about free market, liberalization and open FDI policies which have attracted some of the major brands, investors and realtors from abroad.
India has more experience when it comes to lending and raising capital compared to China. Take a look at the rising boom of Bombay Stock Exchange and existence of major banks like ICICI and HDFC. These pointers have been a major encouragement to global players like Morgan Stanley which has invested $68 million in
real estate India.
Conclusion
India has raised the bar in investment scene so far
real estate is concerned. The country has immense scope of building infrastructure and increasing returns on investment by 50%. The yield on
commercial real estate India have been larger than global
real estate which makes this country such a popular destination in terms of
real estate investment.
http://cnc-services.ytona.com/2010/11/18/commercial-real-estate-prospects-in-india/
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Posted By Noida Property 7 to
India Property, Real Estate India at 11/23/2010 10:44:00 AM