The real estate sector is one of the fastest growing sectors in India and is poised to grow manifold with the thrust on infrastructure expansion. Highways, airports, SEZs, townships, commercial properties etc. are coming up all over the country, representing a great wealth creation opportunity for investors.
According to Merill Lynch (world's leading financial management and advisory company), the Indian realty sector will grow from $12 billion in 2005 to $90 billion by 2015. Knight Frank, the real estate consultancy group, has predicted a 20% growth rate, year on year for the organized sector in India. This year, the Government of India has added fresh impetus to real estate sector by allowing 100% FDI. This relaxation of FDI ceiling rate has opened the doors for the international real estate developers to come to India.
Real Estate as an investment
According to the Financial Planning approach pioneered by Bajaj Capital, real estate is an important asset class. Investing in a carefully selected mix of asset classes is the ideal way to achieve long term investment success.
The real estate sector in India has always been viewed as an unorganized sector but the past few years have seen a shift in the key that drives the growth. Returns from real estate investment in India have been higher than in other Asian countries.
Real estate is an important resource that assists wealth creation. The real estate scenario in India has undergone a paradigm shift to include sectors like entertainment, hospitality, retail etc. along with the residential and office spaces. The Government of India's decision to allow 100% FDI in real estate construction has been another favorable step.
Investment in real estate has begun to look competitive and is turning out to be a good investment option as compared to other investment options like equity. It attracts investors by giving a possibility of stable and predictable income yields, moderate capital appreciation and tax structuring benefits. Overall, real estate is expected to offer good investment alternatives to stocks and bonds in the coming years.
According to Merill Lynch (world's leading financial management and advisory company), the Indian realty sector will grow from $12 billion in 2005 to $90 billion by 2015. Knight Frank, the real estate consultancy group, has predicted a 20% growth rate, year on year for the organized sector in India. This year, the Government of India has added fresh impetus to real estate sector by allowing 100% FDI. This relaxation of FDI ceiling rate has opened the doors for the international real estate developers to come to India.
Real Estate as an investment
According to the Financial Planning approach pioneered by Bajaj Capital, real estate is an important asset class. Investing in a carefully selected mix of asset classes is the ideal way to achieve long term investment success.
The real estate sector in India has always been viewed as an unorganized sector but the past few years have seen a shift in the key that drives the growth. Returns from real estate investment in India have been higher than in other Asian countries.
Real estate is an important resource that assists wealth creation. The real estate scenario in India has undergone a paradigm shift to include sectors like entertainment, hospitality, retail etc. along with the residential and office spaces. The Government of India's decision to allow 100% FDI in real estate construction has been another favorable step.
Investment in real estate has begun to look competitive and is turning out to be a good investment option as compared to other investment options like equity. It attracts investors by giving a possibility of stable and predictable income yields, moderate capital appreciation and tax structuring benefits. Overall, real estate is expected to offer good investment alternatives to stocks and bonds in the coming years.
