Commercial real estates such as offices, shopping malls, hotels and hospitals, etc. fall in rest 20%. Real estate market is bound to grow in leaps and bounds as according to the Tenth Five-Year-Plan, there is a shortage of 22.4 million dwelling units.
Estimates reveals that over the next 10 to 15 years, 80 to 90 million housing dwelling units will have to be constructed with a majority of them catering to middle- and lower-income groups and poor sections. Therefore, there is a huge potential in real estate development. If everyone has to be given a house, new houses have to be built which would cater to the much required accommodation need of masses who are coming from under developed areas in search of employment opportunities.
Factually, the
Indian real estate sector plays an important role in the economy of India. Whereas, agriculture employs the highest number of people in India, real estate sector is second only to the agriculture in terms of employment generation. Nearly, five per cent of the India’s GDP is contributed by the housing sector. On the other hand, in the next five years the contribution of housing industry is going to increase markedly earning huge profits.
In such as scenario companies will buy commercial property in India to sell commercial property in India. On the other hand, organized retail will help in growth and development of commercial office space requirements as the sector will require some 220 million sq ft by 2010. Moreover, in such a developmental scenario commercial properties and residential properties are bound to grow in leaps and bounds.
According to a report by McKinsey, India is going to see boom in the construction segment where average profit is 18 per cent , exactly double from the construction projects undertaken in the US; and, that is the reason that the US construction companies are coming with new proposals to undertake construction work in India. Interestingly, growth is not restricted to a few towns and cities but is pan-India, covering nearly all tier-I and tier-II cities, etc.
Indian government is wooing to attract maximum foreign direct investment (FDI). The latest data show that India attracted US$ 12.62 billion approximately in the current fiscal year. Moreover, the government is longing to unlock the potential of the sector and also meet increasing demand levels of accommodation and commercial space. Once special economic zones (SEZs) will start showing up, development in real estate segment would be a real and buying of commercial property and residential properties would be done in large scale.
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