Real
estate investors searching for the latest emerging property
hotspots worldwide are struck by the seemingly endless possibilities
in the residential and commercial property sectors in India.
As the seventh largest country in the world
in terms of its land mass and with so many diverse and successful
micro economies creating pockets of massive employment and
affluence in certain parts of the country, the opportunities
for property investors in India are as diverse as the geography
and demographic make up of the country.
There are two main sectors of the Indian economy
that have resulted in the creation of micro areas of economic
boom and wealth and which have subsequently resulted in a
thriving residential and commercial property market.
The two sectors are tourism and outsourcing.
India’s tourist market in Goa and the
country’s successful creation of outsource centres in
the IT, manufacturing and service industries in the cities
and areas around Hyderabad, Pune, Kolkatta, Ludhiana, Jaipur,
Ahmedabad and Chandigarh in particular have all created micro
investment property hotspots.
And while the government of India remains
absolutely committed to countrywide economic growth through
diversification, one can begin to understand the future wealth
of property investment opportunity in India.
Examining the property potential immediately
available in India today, one is initially drawn to the tropical
beaches of the Goa region in India which have been attracting
growing numbers of increasingly wealthy visitors annually
and which are now developing as retirement markets for European
and Northern American citizens seeking an affordable sunny
retirement home location.
The influx of tourist and retiree based revenue
has in turn attracted more influential and wealthy developers
and hoteliers to the area. As a result this former Portuguese
colony that combines a unique European flair with tropical
beaches and Indian culture, service and traditions is flourishing
as an increasingly luxurious and attractive second home and
retirement home location.
Furthermore the demand for luxury villa and
apartment rental from the holiday market in Goa is on the
up and those buying into this part of India are seeing impressive
rental yields and annual price gains in the region of 14%.
Together with tourism and outsourcing, real
estate is one of the fastest growing areas of India’s
economy - the investment property market is generating average
annual gains of 14% and the construction industry is managing
an average per project profit in the region of 18% which is
about double what countries like the US and UK can achieve.
The housing sector in India has been growing
by up to 34% a year as demand from the domestic and overseas
markets increases and it is the property sector in India that
has the best foundations in place for long term growth and
profit potential.
The outsourcing centres in India have been
the main weight behind the significant 34% increases in the
housing sector because the growth in the intrinsic wealth
of the Indian’s employed in the IT, manufacturing and
service outsource centres has allowed them to afford to rent
and purchase western style and standard properties.
International property investors have been
ploughing money into the creation of residential and retail
developments to service these particular Indian citizens and
international banking corporations and financial institutions
have been buying up major commercial concerns and profiting
from increasing lease costs chargeable.
The current opportunities for growth and yield
in the commercial and residential property markets in India
are impressive and diverse. And as India builds on its reputation
as an affordable retirement location, an attractive and safe
luxury tourist destination and as a centre for manufacturing
and service based excellence, so the domestic and international
demand for property in India will increase.
And finally, India is a country with many
social and economic issues to address over the long term,
it is also a country blessed currently with strong political
leadership determined to liberalise investment opportunity,
improve the lives of all of its citizens, develop infrastructure
and speed up economic reform - therefore India is a country
with a positive economic future offering massive room for
development and profit in the property market.
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