India’s property markets are frenzy and are being driven largely by the rapid expansion of its information technology industry and the simultaneous growth of its middle class.
Boom is being witnessed by the commercial property sector. Properties are being transacted at unbelievable prices. The land prices currently prevailing in IT spaces have shot up three to four times of what it was two-three years ago.
Currently the country’s commercial and residential real estate market is valued at about $50 billion now, and is expected to grow 25% annually.
Whether from investors point, buyers or price everything is gearing up to steep heights.
According to a research there are thousands of commercial projects springing up across the country with the total Commercial activity index jumping to 60 in June from 58.3 in May with the sharp acceleration of commercial property in June & positive signals for the third quarter.
Such a sharp acceleration is visible from the fact that 18 million square feet of commercial buildings were erected in 2004 & year 23 million sq. ft. of will pave this year & by 2009 the toll will touch 50 million.
The areas where major investments are being generated are Bangalore, Mumbai, Hyderabad, Chennai, and Gurgaon, a suburb of New Delhi & further extending its proximity to second-tier cities such as Pune in the west, Jaipur and Chandigarh in the north, and Kolkata in the east.
All these are making MNC’s & foreign investors India as a keen target to invest. & the country is being considered as the “the next big thing” for investment.
Under this many Israeli Companies have not far in the race lined up for major investments giving neck to neck competition to powers like China.
So also the various joint ventures inflowing by different players like Big Shopping Centers (2004) Ltd who recently mounted up an Indian subsidiary with a local partner owing 60% in the venture & plans to build commercial centre making an investment of USD 40 million.
All these are universal to the fact that there is a real hunger for new construction to keep tempo with India’s robust 7% economic growth.
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By: Atul Sharma
About the Author:
Author is a real estate expert.
