Real Estate in India

Post deregulation and liberalization, real estate in India has seen a rapid expansion. Burgeoning middle class and growing demand, the super strong demographic impetus, revised investor friendly policies, huge quantum of FDIs, rural exodus and urbanization, expansion of real estate in terms of becoming a more structured and organized sector have all enthroned real estate sector in India. The new stand adopted by Indian government regarding foreign direct investment (FDI) policies has encouraged many countries to invest in India. India has displaced US as the second-most favored destination for FDI in the world.
Not only is real estate one of most crucial economy driver, it is the second largest employer after agriculture in India. With the conducive real estate environment (residential, retail and commercial) in metros of India such as Mumbai, Delhi & NCR, Kolkata and Chennai, Hyderabad etc and in tier two cities, the foundation for real estate looks strong.
More and more real estate biggies cashed on to this sentiment and built luxury homes. Ultra-luxurious and grandiloquent! Golden Gate Properties, EMAAR MGF, Mantri, Unitech, DLF, all of them competed to dole out homes more pompous than the other.
Then..
Market slump crippled real estate sector. It bore the cardinal shift from being a seller’s market to buyer’s. It reached the point of abyss when builders had to put their projects on hold. It could only look up from there!
Today, the sentiment is more positive, you can see that in the faces of builders, in the smiles of the sales guys and investors. Major projects have taken off, regulatory bottlenecks have been cleared, the construction is picking momentum and the future bodes well.
Another cardinal shift has been the shift from luxury housing to affordable segment. Taking lessons from the mercurial dynamics of housing from the slump and the disastrous fall of its sibling elsewhere, real estate in India realized that chanting the budget housing mantra is the order of the day.
DLF and Omaxe have started the trend and announced their long term investment plans in affordable housing and others are catching up fast.
That’s the market scene in Indian real estate at a bird’s view glance.
Each post in this blog will analyze the Indian real estate sector, major players, latest developments, technologies and beyond.