Should I Invest In Real Estate In India?

It is often said that money begets money. But, your money begets only when you make good investments. Having said that, we mean, your investment decision or should we say the ability to read the pulse of a market beforehand is all that matters to multiply your money. Therefore, you must keep an eye on the best options available in any market for investment. Again, ‘best’ doesn’t necessarily mean the established pockets of investment. Instead, it includes the emerging economies worldwide. If you continue to visit this site, we are sure you will come across many insights on the investment opportunities in some of the fastest growing economies in the world like India.

Why real estate investment in India is good:

Like you, there may be hundreds who would wish to know whether they would get a good return investing in the Indian real estate sector. Well, to begin here with the right mindset, you should know that despite the overall sluggish market and the fall of Sensex by 25% in 2011, property prices across the cities in India remained firm. This indicates a matured behavior of the real estate business in India.

Salient points that you should know about the Indian real estate sector:

  • Growing population: India accounts for 17.74% of the world population and it is the second country in the world by population. The most fascinating part is the median age of India’s population which is estimated at 27.0 years. It connotes that the demand for retail, commercial, and housing sector will keep growing in the near future.   
  • Growing economy: India is a developing economy. According to an estimate, the real estate business in India will touch US$ 180 billion by 2020. It means the housing sector alone will account for 11% of India’s GDP in that year with an estimated CAGR (Compound Annual Growth Rate) of 11.2 percent during the period 2008-2020. Simultaneously, commercial, retail, and hospitality sectors are growing significantly.

The growth of IT (Information Technology), ITes (Information Technology enabled services), and e-commerce in India have fuelled the growth of this sector and the trend will continue for some time. You will be happy to know that the private equity and debt investment in the Indian real estate sector grew by 12% YOY (year on year) in 2017 and it was valued at US$ 4.18 billion.        

  • Increased disposable income: With the growth of industries, the employment opportunity for the masses has significantly increased. This has positively impacted the disposable income of the people there. As a matter of fact, the demand in the housing sector coupled with the retail and commercial sectors is steadily growing.
  • Infrastructure development: The current government in India has pushed for the infrastructure development across the country thereby connecting smaller towns with the cities and the bigger towns. This translates to further economic development in the backward regions. As a matter of fact, the rate of urbanization in India has grown manifold and it is currently estimated at 33.2% of the population.  

Browse online sources regularly and stay updated on things/issues that affect the Indian real estate business and your portfolio of investment.