Scenario of Real Estate

Review Over Past 10 Years

Take a look over the real estate review in past 10 years it will help in making wise and profitable decisions related to buying, selling, renting and leasing of properties in India. Here I m providing the methodical review and changing scenario in real estate and how this perpetuates economic growth that will bring the extraordinary result with the investment.

Real Estate Contribution to Indian Economic development

Indian Economy consist the Indian real estate and construction industry as an integral part. It plays an important role in the development of the economy. Here, I would like to familiarize you with the contribution of real estate segment in the India's gross domestic product (GDP).It has been estimated that there is 6.3 % of the contribution from the real estate sector in the year 2013 and the expectations are there to generate 7.6 % of contribution with the 17 millions of the employment opportunity across the country by 2025.  

The real estate sector is being segmented in to 4 different sub sectors, - Residential ,Retails, Hospitality, Commercial,These are at the growth phase of meeting the increased infrastructural needs. Among all of these housing, individually contributes the 5-6% of the country GDP.

Segments of Real Estate

Government towards foreign Direct Investment

Besides all these government has also taken initiates to increase the foreign direct investment by initialising the liberalization which has attracted the buyers and the investors from India but NRIs & Foreign investors has also deployed their money in to Indian market. This has been reflecting the continuous growth of the investors, where investors have invested Rs 7,705 Crore (US$ 1.14 billion) in ready office and commercial space during the last three years.

Real Estate Trend in 10 years

Illustrating the figure of historical real estate prices Property value has trended rise in between 2-5 % in every year up to 2005 .But there is declined been noticed since 2006. There was of 39% per year of decline were reported from 2007-2008. In the last 10 years the professional real estate investor has been increased basically it includes the number of middle class Indians. The Real estate trend in 2013 is so different .The casual discussion held's over which part the investment should be done. This brings out the 20 -25% returns per year.

In large metros like in Delhi, Noida the scenario brings the light over the houses under construction in several projects like as Jaypee greens, IITL Nimbus Greater Noida, flat in Jaypee sport City, which has been available at Rs 1000-1500 less than what the builder is selling to them.

Indicators Of Real Estate Cycle

Population growth Employment rate Gross Domestic Product Household Disposable Income Stock Market Values Demand Supply Scenario Average house price movement Price to income ratio Net Rental Yield Interest Rate Demand Supply Scenario

Rapid urbanization Significant rise in consumerism Policy and Regulatory reforms (100% FDI

relaxation) Surge in Industrial and Business Activities Increasing demand for newer avenues for

entertainment, leisure and shopping

Drivers Of Indian Real Estate

Approaches towards New Technology

The real estate industry has struggled to a great extent in the past five years, with recession and housing bubble threatening the industry because of increasing cost of construction material, funds deficiency , man power shortage and difficulty in getting approvals and clearances over projects.

The developmental process of our towns and cities need faster deliverables and lower costs in the construction industry. In such a scenario, technologies are paving the way for their success that can be trusted and is cost effective.

Thus, the several technologies have been introduced like as of “Precast” and “Jump Form”.

By reviewing the trend and the real estate markets contribution, you must have come to know that there is continuous growth in Indian property market, apart from periodic adjustments, in the last few years.

There are 500 million( approx) Indians waiting to approach the middle class group as there is an estimation that there is a requirement of about 75 lacs housing units by 2013. However the main concern is for the the affordability in most of the major cities in India. There is a huge demand for housing but all it depends on the affordability.

Analysis

Udai Pro mart a real estate consulting group has bring about all this review to help you to make wise and profitable decisions related to buying, selling, renting and leasing of properties, in India. For more details about <a href =”http://www.udaipropmart.com/” > Property on Yamuna Expressway, You can contact to Udai Propmart. </a>

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