Real Estate is being considered as the safest sector to invest in order to harvest giant returns. Huge profits can be yielded by investing in properties in India where one has wide range to choose between commercial properties and residential properties.
Growth of property sector greatly depends on the government policies that are accepted to invite foreign investments especially in economic and industrial segment and the one out of those is foreign direct investment (FDI) policy inviting a large lot of countries to invest in Indian commercial properties. This investor facilitating policy allows overseas investors to make their projects go beyond 50,000 square meters (538,200 square feet) of floor space which works well in the expansion of commercial properties. Real Estate sector has grown to heights by this liberal stand of Indian Government which has made the real estate sector as the second largest employer after agriculture in India. The rise in the Real Estate sector carries along the development of all other areas like residential properties, commercial properties and retail in all metropolitans including Mumbai, Delhi & NCR, Kolkata and Chennai. The road to the real estate success further gets smooth through convenient access to bank loans and rise in the earnings.
You would still be curious to know what is there in the Real Estate that makes it preferable over other sectors and answer lies in the fact that Indian economy has gained a hike of 8.1 percent in the previous financial year. When there is a rise in economy, the purchasing power of people also takes a lift hence generating a desire to invest. Real estate being one of the most lucrative options considering the continuous hike in prices, the demand for properties has apparently increased.
People who travel miles for their occupation find it more practical to own a house in their workplace city. This has evidently led to rise in the demand for apartments. As per the report of the Technical Group on Estimation of Housing Shortage, there is an estimated shortage of 26.53 million houses during the Eleventh Five Year Plan (2007-12) which further opens doors of big investment opportunities in both commercial properties and residential properties. The giant real estate companies are eyeing over this shortage and are banking upon the construction and development of apartments. Moreover, there will be around 2 million graduates from various universities which will create a requirement of 100 million square feet of space for office and industrial purposes generating a huge demand of commercial properties.
The demand of commercial properties is further expected to be increase due to the presence of Fortune 500 companies. These companies are looking to establish their business operations in India thus requiring more commercial and industrial space.
Because there is no visible end to the rising demand for properties, real estate is a sector which promises great profits. The horizons of the real estate are expanding and the battle to make the most out of it has already begun. Various real estate companies have come up with several new projects related to commercial and residential properties in order to cater to the needs of apartments and office spaces including the construction of a number of apartments along with residential and integrated township projects in different cities in India. These townships consist of well furnished apartments which are available at pocket friendly prices. The continuous demand and consumption of these commercial and residential properties suggest that real estate business has long legs and lots of growth prospects which make it a safe and secure investment.
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