The investment is the injection of money to get returns. But due to slow down of economy, investors are really cautioned about the investment of their hard earned money and confused about choosing the right option and in turn started looking for opportunities in the foreign market. And India is ranked at top 3 position among countries to invest in globally. Mathematically, real estate provides the best permutation of returns and risk in India. Real estate has a growth record of superior returns.
Driven by growth in the economy, real estate in India is booming. The year 2006 started on a promising note, when the Government of India opened the construction and development sector in the month of February in the same year and allowed 100 per cent foreign direct investment (FDI) under the “automatic route,” in order to spur investment in the vital infrastructure sector. The government has thrown open the lucrative parts of the Indian realty market to global investors for the first time.
This relaxation of the FDI make lots of foreign investors which includes major Indian and international companies to move their funds to real estate in India and specially to real estate in Delhi as it is the India’s power hub. And hence, Delhi is ranked as the India’s largest FDI market in the realty sector.
It is expected that the organized segment is expected to grow from a mere 2 per cent to 20 per cent by the end of the decade.
The development of real estate in India focuses on two primary areas: retail and residential.
In recent years, non-resident Indians (NRIs) have played a very important role in transforming the Indian real estate market. Opening up of the Indian economy provided them with new opportunities and they have shown a great deal of confidence in the changed set up. Since 1994, NRIs have invested a sizeable amount, of which a big chunk has found its way into the property market. Participation by NRIs has brought about a lot of maturity in the market, which in the past was solely dependent on the actual users.
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