With the growth in Indian economy, particularly investment in real estate sector is becoming a strong choice for domestic and international investors. With the boost up in the prices of real estate market, it has turned out to be appealing investment in this sector as compared to investment in capital, debt or bullion market. This industry is attracting investors with several possibilities of stable source of income, tax benefits, reasonable capital appreciation and higher security.
According to a survey carried out by FICCI (Federation of Indian Chambers of Commerce and Industry), in next few years real estate market in India is going to emerge as the most preferred investment option for investment firms and realty giants worldwide. The tremendous potential of property market in India has contributed at large in the overall economy of India. The investment has merely has shaped the new skyline of Indian cities with segments ranging from residential, commercial, industrial, retail, healthcare, hospitality and lot more.
In addition to the expanding real estate sector, government of India is also promoting this sector with benefits of Special Economic Zone (SEZ). The real estate developers are taking maximum benefit out of SEZ as the expansion to their business. Several additional SEZs benefits are expected to offer momentum to the development of commercial offices in specific area where land is comparatively cheaper. Here the SEZ developer is also benefitted with great tax exemption.
The liberalization and economic reforms programs of Indian Government encourages industrial policies with reduced industrial licensing requirements, removal of restrictions on expansion and investment, easy access to foreign technology and FDI. All these FDI liberal policies will give direct positive impact real estate scenario in India. It is not surprising that foreign investors have entered India largely with joint ventures. Maximum growth has been contributed by the flourishing IT and ITES sector with 70% of estimated new construction especially for IT sector.
More investment in commercial, industrial and retail sector means more jobs and more jobs means more workforces. This will bring huge demand and supply in housing. The size of family will be reduced day by day finding housing options for them.
