Why Real Estate Business is Booming in India
Buying a property has always been an important part in an Indian family. Years back, the head of the family would save money to buy a piece of land, house, or a flat. It was a lifetime achievement that was handed over from generations as one of the precious family property. However, this scenario has changed immensely today as people now buy real estate properties as a temporary asset. Each day, hundreds of real estate deals are being closed, properties being sold, land being bought and sold again, and much more. In short, real estate business is a booming endeavor in India.
Role of the Government
Government, local administration, and the real estate rules have a major role in making a property business flourish. For instance, had the laws been convoluted and stringent, it would not have been possible to buy and sell real estate property in a jiffy.
When the government offers support to property business and provides enough funds to boost industrial sector, entire attitude towards property business changes. Today, support to the foreign direct investment (FDI) regulations has made real estate a lucrative business proposition in India. Many countries across the globe have made a beeline to India in a bid to invest in personal as well as industrial properties.
Investment in India
The approach to investment has remarkably changed over the past couple of years or so. FDI rules have been tweaked to accommodate the growing interest of real estate enthusiasts to purchase lands and other property in India. Today, real estate has become the second largest business in India just after agriculture.
One wonders where the investors would plan to invest in India. As FDI has grown by more than three times in a couple of years, and still growing in leaps and bounds, it is an open secret that real estate is a profitable business effort in India.
The booming sector is apparent in metros and major cities of India. From residential to retail and business hubs, the investment has pervaded in all possible areas. There are industrial parks being built from scratch to commercial hubs that are being renovated and polished to meet the demands of the youngsters.
Reasons for Investment
The main reason behind this budding sector is the growing demand and need for property. There are immense opportunities across all important areas in the cities and towns. The investors also feel at ease to approach banks for loans and other issues. Less hassles, high profit earnings, and a positive attitude towards the real estate business has made this sector a wonderful area to invest and pursue business interests.
Moreover, the Indian economy has also been growing for the past couple of years. With the rise in economic condition, the buying ability of the people has also increased. Surveys reveal that in days to come, about 100 million square feet of commercial space is required to accommodate numerous small to medium business firms.
With profits increasing day by day, it is not surprising that more than 70 percent of the investors in real estate business are minting money in this booming trade.