Commercial Real Estate Prospects in India

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 Udaipur as a trendsetter

1. A population of 1.1 billion and a workforce of 496.4 million serves 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. The 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 the market.

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 property for sale in Udaipur and shopping malls.

o 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 a 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?

o According to Grant Thomson, a leading international and audit firm, India ranks number one out of 30 countries having medium-sized businesses 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.

o India has more experience when it comes to lending and raising capital compared to China. Take a look at the rising boom of the Bombay Stock Exchange and the 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 the 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 has been larger than global real estate which makes this country such a popular destination in terms of real estate investment.

Comments

Popular posts from this blog

India - The Real Estate Player

Real Estate India-Property in India-No.1 Real Estate Site