Residential Investment Property

Real Estate: Opening New Vistas of Progress

Over the past 2 decade,s we have been moving slowly but steadily towards a progressive future and the results are as clear as daylight. Today, India is among the top IT and automobile hubs of the world. Such speedy developments need to be sheltered. This is where the real estate segment comes to play.

With the recent advancements in economical conditions of the country and the favourable attitude of the government, the real estate in India is flourishing like never before. According to the recent figures, the realty sector is on its all time high and is advancing at an astonishing 35 per cent and is estimated to be worth US $15 billion which indisputably is equivalent to one of the biggest public or private sectors. One of the very prominent reasons of this abrupt boost in the real estate business is the rising urbanisation and the arrival of foreign brands in India. In the past decade, we have been doing immeasurably well in foreign collaborations and virtually countless offices and corporate houses have been set up in different parts of India.

The boom in the BPO sector has given way to the construction and development of huge offices and office complexes on a large scale. By 2010, solely the IT and ITES sectors are estimated to require nearly 150 million sq feet of land for their office space needs. This means almost the whole of urban India is going to be covered under the towering skyscrapers very soon. It is needless to mention that the real estate sector will be entrusted with the entire responsibility of revolutionising India.

Property in the form of house and land is indeed worth possessing and this is where a large part of the India's middle and low income group spend nearly half of their life. It has been surveyed that, almost 80 per cent of the land reserved for occupying is residential area. The rest comprises of offices, shopping complexes and hospitals and hotels. To make space for the people belonging to low or average income group, it has been proposed that nearly 80 to 90 million dwelling units catering to the needs of these people are going to be constructed. The Tenth Five Year Plan has flashed light on the persisting shortage of almost 22.4 million dwelling units.

Only a handful know that real estate is the second largest employment generator after agriculture. This in turn makes it more than clear that the contribution to the GDP from this sector is also extremely huge.

On analysing just the housing sector, we can figure out the reasons behind its immense expansion which are the growing middle class, the rising standard of living, the rise in income of the people in urban India, the increase in the number of nuclear families and the clear change in the demographics of the country which shows that the average age of a new home owner in 2006 came down to 32 years from 45 years a decade ago. Another very important reason can be the ease with which the housing finance are made available to the home buyers.

Owning a property in the form of home or land is a best way to prove your economical well-being. The loan agencies quite happily sanction the loans against property for them. Having a home or land on your name proves that you have the capability to pay back whatever you borrow.

The real estate in India is a promising sector that can throw huge investment opportunities. The burgeoning outsourcing and Information Technology Industries have paved path for growth in commercial office space requirements. This sector is now not only a fund parking mode of the affluent class, but has grown to be a major role player in debt and equity market as well. The whole country is savouring the new vistas which the realty sector has opened in India. Now it's your time to act.