Current Trends in the Real Estate Market

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Real Estate, often also called Property, generally refers to land and fixtures and involves purchase and sale, development of land, residential and non residential buildings. Real estate business attracts a lot of players, and the main participants are landlords, developers, builders, real estate agents also called property dealers, tenants, buyers etc. Housing and construction business also forms part of the Real Estate sector.

The real estate sector in India assumed greater prominence with the liberalization of the economy, as the consequent increase in business opportunities and labour migration led to rising demand for commercial and housing space. At present, the real estate and construction sectors are playing a crucial role in the overall development of India’s core infrastructure. The real estate industry’s growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services (hospitals, schools) and information  technology (IT)-enabled services (like call centres) etc and vice versa.

The Indian real estate sector has traditionally been dominated by a number of small regional players with relatively low levels of expertise and/or financial resources. Historically, the sector has not benefited from institutional capital; instead, it has traditionally tapped high net-worth individuals and other informal sources of financing, which has led to low levels of transparency. This scenario has undergone a change and as of today, the real estate industry’s dynamics reflect consumers’ expectations of higher quality with India’s increasing integration with the global economy.

The Government of India has taken positive initiatives by offering the best in terms of real estate investment, by altering its FDI policies from time to time. With better infrastructure and availability of world class facilities, property in Indian prominent cities are the most sought after proposition.

The boom in the sector has been so appealing that real estate has turned out to be a convincing investment as compared to other investment vehicles such as capital and debt markets and bullion market. It is attracting investors by offering a possibility of stable income yields, moderate capital appreciations, tax structuring benefits and higher security in comparison to other investment options.

With property boom spreading in all directions, real estate in India is touching new heights. However, the growth also depends on the policies adopted by the government to facilitate investments mainly in the economic and industrial sector. The new stand adopted by Indian government regarding foreign direct investment (FDI) policies has been bullish and has encouraged an increasing number of countries to invest in Indian Properties.

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