Corporate Catalyst India
India’s Real Estate Market and Industrial Infrastructure
Index Contents India’s Real Estate Sector 1.1 Overview 1.2 Demand Drivers 1.2.1 Residential Real Estate Development 1.2.2 Commercial Real Estate Development 1.2.3 Retail Real Estate Development 1.2.4 Hospitality Industry 1.2.5 Special Economic Zones (SEZs) 1.2.6 Infrastructure Development Projects 1.3 Cities are the Hubs of Development Activities 1.3.1 Mumbai-India’s Financial Centre 1.3.2 Delhi-NCR 1.3.3 Bangalore 1.3.4 Chennai 1.4 Foreign Direct Investment in Real Estate 1.5 Investment Trend 1.6 Impediments to Investment Page # 3 3 3 4 5 5 5 6 6 7 10 12 14 15 16 17 18
Corporate Catalyst India – client use only
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Corporate Catalyst India
India’s Real Estate Market and Industrial Infrastructure
1. INDIA’S REAL ESTATE SECTOR
1.1 Overview With around 1.1 billion people, India is the second most populous country after China and it is expected to overtake it by 2030. Its economic transformation over the past decade has pushed up real GDP growth to an average of 6 per cent per annum since 1992. India is emerging as an important business location, particularly in the services sector. Its favourable demographics and strong economic growth make the country an attractive place for property investors, given that demand for property is determined chiefly by business development and demographic trends. Historically, the real estate sector in India was unorganised and characterized by various factors that impeded organised dealing, such as the absence of a centralized title registry providing title guarantee, lack of uniformity in local laws and their application, nonavailability of bank financing, high interest rates and transfer taxes, and the lack of transparency in transaction values. In recent years however, the real estate sector in India has exhibited a trend towards greater organisation and transparency, accompanied by