Property in India

The Indian Government has been guarding its emerging property market carefully in a bid to protect the country’s economy and prevent property in India from overheating, achieving unsustainable highs and suffering from subsequent profit taking.  As a result the government has restricted foreign access to the market and concentrated on giving constructors permission to only build to meet demand in both the commercial and residential property sectors. 

Now because certain restrictions on foreign direct investment into real estate have been lifted and it is possible to invest directly into the construction and development of property in India, global attentions are turning toward India and focusing on rooting out the most exciting cities offering the greatest potential for growth, expansion, profit and yield.  This article presents an overview of some of the main areas of India that those seeking investment opportunities in the real estate sector are focusing on.

India has one of the fastest growing retail property markets in the world because as domestic purchasing power is increasing in India so consumerism is increasing and the rapid development of retail spaces, malls, shopping centres and supermarkets is only just keeping apace with demand.  Retail property in India is one of the hottest market sectors at the moment for foreign real estate investors with growth in this particular sector alone expected to increase ten times by 2010.

In terms of the cities seeking the greatest investment and attracting the most interest from international investors concentrating on the retail investment property market in India, Mumbai, Bangalore, New Delhi, Hyderabad, and Pune have all submitted extensive plans for the expansion of their shopping facilities and are, as a direct result, the main areas where investors are concentrating their interest.

Pune and Kochi are two cities where significant and sustained developments particularly in the information technology and servicing industries have resulted in rapid increases in demand for commercial office space.  Both cities are second-tier and are managing to attract a great volume of investors who have smaller initial deposits to invest – basically these are investors who recognise the potential from property in India but who need a slightly cheaper market entry point.

Hyderabad and Chennai can also be banded together in terms of their appeal – both are strategically well positioned and both are rapidly expanding in terms of the international companies who have committed to establishing a base in Hyderabad and Chennai and who require commercial property space.

Naturally enough this demand for commercial property in Kochi, Hyderabad, Pune and Chennai is as a result of the cities developing economically.  And as they develop economically so the number of professional migrants moving to live in Kochi, Hyderabad, Pune and Chennai increases and this pushes up demand for residential property in India – which is another sector requiring international funds and attracting overseas property investment interest proving that the property market in India is multi-layered and offers property investors great scope and potential for their money. 

Special Reports: Property News for India

India Real Estate Investment Overview
India's property market has unparalleled room for expansion and real estate investment into India is now beginning to boom

India Investment Real Estate Buying Guide
India's investment real estate market is beginning to boom and return impressive profits, but the sector remains restrictive for investors

India: A Real Estate Investor’s Country Guide
International real estate investors examining India for property investment opportunity are discovering inimitable profit and growth potential.