Why Buy Property in India

The Indian real estate market is slowly and gradually getting organized to become one of the largest contributors to the economy. With a lot of investment flowing in from various sources the real estate sector has got more attention from the government and things are getting organized. A sense of confidence has been infused amongst the investors which has further augmented the investment. The transactions have become a lot more transparent and property is being considered as a safe investment option.

India promises high return on investments for any local or foreign investors and due to its liberal and attractive FDI policies, the realty sector of India is witnessing a sudden boom. So, if you want to be a part of this emerging economy then an investment in India is highly advisable. India holds great promises.

The government has played a vital role for making the real estate a lucrative proposition. They have supported the builders and developers to create world class properties by way providing them adequate finance for their projects and making the land available to them.

Indian real estate has evolved as a huge industry in past few years and as per industry sources this boom will continue for a good time to come. Indian government is also making huge revenues by selling the land to builders for various projects. On the other hand, government is also contributing by way of providing the infrastructure support and promoting the investment in the real estate sector.

With economic growth in excess of 7% per annum since 1996, reaching 8.5% last year and predicted to rise above 10% in 2007, India is the Tiger Economy of the moment. 15 years of economic reforms, massive government spending on infrastructure and India’s emergence as a world leader in outsourced IT skills have laid the groundwork for a sustained period of growth. It is the 2nd fastest growing economy in the world after China and by 2010 will be the world’s 3rd largest economy after China and the USA. One of the worlds leading financial management and advisory companies, Merrill Lynch, has forecast a more than seven-fold growth in Indian real estate values from $12 billion in 2006 to $90 billion by 2015, this equates to an annual capital growth of 25%!

For Example
Following these estimated figures, investing in a 1 bedroom property in the Hill View development, located 3 miles from the upcoming Poladpur special economic zone, costing $20billion, would cost £23,685 including all fees and taxes and by 2015, after the property has been built and enjoyed 5 years ‘guaranteed’ rental at 7.5% net return per year, the property could be worth as much as £140,000 (estimated). The builders of this development, have already announced they expect the properties to double by the time of completion in 2009. So for very little investment, a large return can be achieved.