Property Investment India- The Raging Bull
Introduction
If you are joining the list of property investors in India or planning on property investment in India then you have all the reasons to read on! All that you ever wanted to know for inheriting that dream house you ever so wanted! Let's get going then!
Property Boom in India
Property boom in India picked up an all time high over the last 5 years. According to Merril Lynch real estate India will grow to $90 billion over the next 10 years. Yes, you can feel it all across the place-skyscrapers, growing infrastructure, shopping malls, huge office galleries, SEZs, hospital chains, software parks, theme parks etc. The economy has felt a deep impact of this trend and with the present growth rate at 8% GDP the middle class couldn't't ask for more! Ask the estate agents property owners and you would feel the impulse of investor friendly India.
Property Investment in India – Online Banking
With the change in Govt. policies and a growth in the expenditure of the salaried class in India, property investment has been an all time high since last 2 years! Today you no longer need to worry about buying a house as real estate agents property has gone online and investment friendly. Thanks to online banking India! The money flow has been massively encouraging with a rise of $7 to $8 billion over a span of 2 years. To this extent the Govt. Has now allowed international and domestic companies to operate real estate funds through private equity funding. Most of the funding has been floated from financial institutions and banks like HDFC, ICICI, Kotak Mahindra Bank, HSBC etc.
Does the Investment Scene Promise Profit for Us?
Definitely! With a growth of 30% every year nothing could be more promising! Take a look at all the major metros and nearby areas- skyscrapers, shopping malls, theme parks, huge residential complexes etc. are there to blow you away! It is like this according to most of the prominent property agents in India: With a 12-13% ROI on property investment India the jump has been 50% higher than US and Europe.
According to Deutsche Bank around $850 million additional capital was invested in Indian real estate in 2005. Unitech is currently the largest builder in India, much to the surprise of another giant in the industry, DLF Universal! The market size has been phenomenal. Just to highlight the growing trend here is a snapshot! The average cost of a home was about 22 times the average annual salary. Today it costs about 4.7 times the annual salary of an individual!
Conclusion
The price appreciation, growth in the economy at 8% GDP, lifestyle trends, real estate boom and change in infrastructure are mainly driving the market dynamics of property investment India. Investing in residential property seems to be the most profitable business for the middle class and the yield is roughly 5-6% per annum. We hope to see real estate India as the most profitable destination in the world in the near future!
