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    0 Replies Latest reply on Apr 7, 2009 8:17 AM by AarthurKaren

    On a growth curve

    AarthurKaren Newbie
      The increasing demand that's been faced by Builders in India [/url] is not an isolated case but a pointer to the views of a growing number of NRIs across the globe who are now making a beeline to become a part of the real estate phenomenon, one of India Inc's biggest success stories in the last decade. A trend that is vindicated when one looks at the current industry data which reveals that this burgeoning sector is set to grow at a stormy pace of about 30 per cent p.a. to touch an estimated $50 billion by 2010, from its existing level of around $12 billion, with the market size alone expected to touch a whopping $90 billion by 2015.

      Another significant contributor to India's growing clout as an investment destination is the mushrooming of IT and ITES companies that are setting up base in the country or fine-tuning plans for expansion. Industry experts opine that at least 25-30 per cent of personnel from this sector, many of them expats and NRIs, would need independent accommodation to the tune of 50 million sq.ft.

      A fact endorsed by home loan figures by leading banks like ICICI, HDFC in the recent years which also reveal that the number of big ticket loans (Rs 1 crore and above) is taking a quantum jump. According to sources in LIC Housing Finance and ICICI Home Finance, NRIs and high salaried individuals account for bulk of their Rs 1 crore plus disbursals.

      This growing demand and interest among NRIs in the country's real estate augurs well for the future more so with the growing corporatisation and transparency of the realty industry over the last decade. According to Jones Lang LaSalle's annual investor sentiment survey for Asia, Delhi, Mumbai and Bangalore were the best choices for investors in 2005. On hindsight, it's quite evident that India looks set to emerge as on of the top global real estate investment destination in the near future with the sheer size of the country allowing even small investors to gain attractive returns.