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Indian Real Estate - get more and more organised


Indian Real Estate - get more and more organised

Last updated: April 18 2007
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  • Indian Real Estate - get more and more organised

    Indian Real Estate is getting more and more organised with every passing day. These are the factors which are leading the foreign investments and investors both to turn towards India. Everyone wants the Indian Real Estate pie, with expectation of 20 to 25 per cent project return and and between 9 percent to 11 per cent annual yield on investment.

    However, returns in most cases are higher than expected, despite the possibility of 20 to 30 per cent of depreciation possible in certain over-heated project-specific pockets.

    The demand for corporate space in India is higher than the supply. So rentals are not expected to depreciate in the near future. Places like Bangalore(IT Capital of India), Gurgaon and Noida are seeing great future in terms of Foreign Direct Investment. Commercial Sector in India are showing more returns than Residential sector.

    This would ensure a high probability of foreign investment in organised real estate development in the country. While India might have an advantage in terms of access to and cost of labour, there is a need for increased transparency in the real estate business in India.

    This transparency can help India earn more bugs, as there are many foreign investors who want to invest in the Indian Real Estate Market but they are still keeping away only bcoz of the transparency.

    So I think to attract more and more Investors to the Indian Real Estate, a transparent and organised Real Estate should be established, which is possible only and only with the help of Government policies and acts. Government should be more and more concerned towards the Real Estate which will only ensure the growth of both Indian Economy and Real Estate in India.

    In the end who is the Culprit rightnow, Government or Realtors, for both Transparency and Organised Real Estate?
    Last edited March 19 2007, 04:51 PM.
  • #2


    Re : Indian Real Estate - get more and more organised

    Get Organized or Suffer!

    Indian Real Estate is undoubtedly Booming but the real estate is unorganised.

    The conclusion of the first international realty fair held in New Delhi which was attended by realtors of 15 nations is that Indian Real Estate is certainly booming but all the realtors felt that the real estate sector in india is highly unorganised. As there is no governing body over the Indian Real Estate so anyone can do any sort of scam and can get through with it easily. The transparency factor in the real estate sector of India is certainly going to play a role to attract investors in the future, if Indian Government take some stern steps.

    For example, before putting advertisement in the newspaper in various countries there is a need of trade license, likewise India should also follow this policy. There should be a regulatory body at the central, state and even district levels to ensure that the real estate sector gets structured and the consumers are protected. Sometimes people put all their lives savings into a property. So government should make some stern laws so that peoples are not cheated. Government should make some sort of regulatory body over the Real Estate Sector of India.

    The Indian Economy is booming with the IT industry booming. The main force behind the Real Estate Boom is the Indian IT industry. It is predicted by the experts that Indian Economy will further flourish with the IT industry being the key player in the development. So this will directly effect the Indian Realty Sector.

    So in my opinion India should better be prepared for this era and establish a central body over all the Real Estate Industry.
    "Better do it Now or Pay for it."


    Have any questions or thoughts about this?