India Property Market

The world’s new “Tiger Economy” is now on the brink of a property boom that could bring fond memories flooding back to those who were smart enough to have invested in Dubai ten years ago.

Since the 100% relaxation of Foreign Direct Investment regulations early last year the already burgeoning Indian economy has been further boosted by a veritable explosion in real-estate investment. Indeed, Merrill Lynch has forecast a more than seven-fold growth in Indian real estate value from $12 billion to $90 billion by 2015.

Not surprisingly, with such promising predictions and top-quality off-plan apartments available for under €30,000, India is now a property investors paradise.

The residential property market is experiencing exponential growth right across India at the moment, most especially in urbanised areas and those close to the government’s new SEZ’s, (Special Industrial Zones). Indeed, according to the Bank of Baroda’s Chief Economist, property prices have appreciated by as much as “60% to 100% over the last 12 months in most towns.”

This phenomenal growth rate has been fuelled by a combination of driving forces, chief among them being…

Massive demand for housing - according to the Indian Government there is currently a housing shortfall of some 20 million units.

Rising Incomes - the booming economy and lower taxes have led to a growing middle class with much greater disposable incomes.

More people want homes of their own - 55% of India’s growing population is under 25, the average age of a new homeowner has dropped from 45 to 32 in the last ten years, and communal homeownership is giving way to the nuclear family structure.

Growing mortgage market - declining interest rates have made property more affordable despite actual price increases, while the home loans market is growing 30% year on year.

Here’s what the experts are saying about the property market in India…

 

“India is undoubtedly the most exciting
property market in Asia.”
Goldman Sachs Investment Banking

“Rising disposable incomes, particularly among young urban professionals and easier access to finance is fuelling a residential boom in India.”
Jones Lang LaSalle

“A property market that’s increasingly being regarded as the jewel in the crown of many a diversified international portfolio… we’re looking at an economic and property boom in its infancy.”
Irish Property Buyer

“There’s probably no better market in the
world for low cost housing”.
Sam Zell - Chairman of Equity International and
billionaire real-estate entrepreneur.
 

 

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