The article describes the current situation and trends of the realty sector of India, and how the transactions in the real estate industry have aided to the continual growth of country’s economy.
Past 10 years have been fruitful for the India in terms of the real estate transactions. The growth of the real estate segment is evident day by day and is expected to grow in the coming years as well. The growth in Information Technology, IT enabled services (ITES), Healthcare, construction, real estate and others have added to the demand of the buildings and commercial spaces in India.
The property boom continues as the growth in the residential and commercial sectors have further accelerated growth in business and 100% foreign direct investment (FDI) in construction and development sector. India’s economy is ranking high with 8% GDP growth per year and the major contributor to this growth is the real estate sector of the country. There has been a rising demand for the space for the IT, ITES and BPO industry as the outsourcing of the services in the Indian subcontinent has increased manifolds. This has led to 40% increase in the commercial capital values, while the value for the residential space has increased by about 25-40% annually.
The economic growth of the country has also given good returns for sectors such as automotive components, chemicals, clothing, shoes, pharmaceuticals, jewelry and many more. In the last year, the office rents in New Delhi increased by 30% on average, while in Mumbai, the prices were up by 50%. For the new office locations and suburb regions of the city, rents have increased by 20%.
In India, the process of real estate transaction is quite fascinating, as a number of laws, which govern the realty sector since the 19th century (Transfer of Property Act 1882 & Indian Stamp Act 1899), govern the real estate industry. Only some little amendments have been done to reflect the realities and the conditions of the contemporary era.
Seeing the immense growth prospects in the country, NRIs are considering India to be a good investment option and many of them are looking forward to return to their homeland. According to a recent study, the returns from rental income or investment in commercial property in metros, is around 10.5%, which is the highest in the world. Real estate in India is now considered one of the most popular investment options after gold, compared to bank deposits or bonds where your return ranges is low. Furthermore, there is the recognition of equity in the property.
To increase the interest of NRIs in real estate, the government has come up with beneficial investment policies for the NRIs, thus benefitting them while they plan to buy plots or houses in India. The Reserve Bank of India has allowed acquiring, possessing, transferring or disposing off the properties in the form of sale or inheritance. These properties are for the bona fide purchasers who are buying the properties for residential use. These properties are purchased through normal banking channels / home loans or accounts.
For NRIs, identifying a property at any prime location is not an easy task and they would require some professional guidance in this regard while processing. A league of NRI promoters has also evolved in this stage, and this breed of promoters caters mainly to NRI investors. The investors planning to invest in India real estate can consult the real estate websites that can be of great use. These websites can also offer professional advice and charge some amount for it.
Author writes on behalf of 99acres.com, a leading online portal thriving to solve the consumer’s requirements in real estate segment. The site offers a galore of information regarding the real estate property such as flat in hyderabad and houses to buy, sell or rent at different locations like properties in Mumbai, Bangalore Properties etc.