Riding piggyback on a booming economy and healthy GDP growth, Indian real estate industry has been expanding at an exponential rate. Favorable demographics, rising purchasing power, availability of cheap finance, professionalism in real estate and reforms initiated by the government are some of the major drivers of this spectacular growth. According to industry estimates, the real estate industry in India has been growing at 33 per cent CAGR (compound annual growth rate) and could be a $50 billion industry in the next four years. The upturn straddles all the major sectors of the industry such as commercial, residential, retail, industrial, hospitality and healthcare.
The burgeoning outsourcing and IT/ITES industry have contributed to the demand for quality office space. With most of the blue-chip MNCs setting shop in the country, the estimated demand from IT/ITES sector alone is expected to be 150 million sq ft of space across the major cities by 2010. In the residential segment, availability of easy home finance and rising purchasing power has driven the growth. Builders are launching high-end, lifestyle residential products to cater to the growing bunch of high net worth individuals. In residential sector there is housing shortage of 19.4 million units out of which 6.7 million are in urban India.
In the retail segment, the country has experienced mushrooming of retail projects across the cities. Specialized malls have become the order of the day. Gurgaon, on the suburbs of New Delhi will soon have an auto mall, while Bangalore is about to get an exclusive furniture mall. The sprawling skyscrapers, marvelously designed residence, awe-inspiring malls and promising infrastructure, along with exemplary acumen to designing and scheming have made India's real estate sector, one amongst the bustling and growing fields. With India being the most alluring destination for foreign investors, there is a huge market waiting to be splurged upon.