India’s real estate market is on a high growth curve and is today one
of the fastest growing market in the world. It is categorized into four
sub-categories such as housing, retail, hospitality, and commercial.
While housing projects contributes six-seven percent of India’s gross
domestic product, the remaining three sub-categories are also increasing
at a fast pace. The Indian real estate is an infrastructure services
that is driving the economic growth of the country. The role of
Government of India has been instrumental in the real estate
development. There are many developer and buyer friendly policies which
are introduced by government.
The market of India real estate stood at US $ 56.2 billion in the
survey of 2010-2012 and expected to touch US $ 179.9 billion by 2021.
The market is expected to grow at the compound annual growth rate of 20
percent in the period of 2011-2014. With first series the modern cities
expected to account for about 45 per cent of this growth.
top eight metropolitan cities such as Delhi-NCR, Mumbai, Bangalore,
Chennai, Hyderabad, Pune, Kolkata and Ahmadabad have maximum office
space absorption were up to 59 per cent during January-March 2014 as
compared to periods of last year. During the period of January-March
2013 Ahmadabad and Delhi-NCR recorded a threefold increase in net
In the first quarter of 2014 number of new
residential projects launches with 56,000 units across eight
metropolitan cities and Bangalore recorded maximum number of units at an
increase of 21 per cent at 17,838 units, followed by Mumbai and
Chennai, according to a report by Cushman & Wakefield.
Indian real estate has large number of investment opportunities, all
corporates look to expand businesses, India is expected to witness major
demand for office space in 2014. Office space absorption across the
country’s seven major cities is likely to increase ten per cent this
year to 30 million square feet, according to global real estate
The retail space absorption by the top eight metropolitan cities is
expected to more than double to 12.7 million square feet in 2014 and
this will take up the retail space across India’s modern cities to 88.6
million square feet by the end of the year according to a report by
Jones Lang LaSalle.
Real estate construction development sector,
including township, housing projects, built-up infrastructure and these
projects garnered total foreign direct investment (FDI) worth US$
24,211.54 million in the period April 2001-January 2014. Infrastructure
activities during the period received FDI worth US$ 2,539.58 million
according to the Department of Industrial Policy and Promotion.
Indian real estate has some major investments and developments such as
Somany Ceramics plans to invest Rs 160 crores for capacity expansion and
brand building, Lodha Developers has invested Rs 1,254 crores for
acquired Clariant Chemicals’ 86-acre plot of land in Thane, Mumbai,
Xander Group has invested Rs 360 crores in Kapstone Constructions,
Ambience Group plans to invest about Rs 1,80 crores over the next four
years to develop two housing projects in Noida and Gurgaon, comprising
1,100 housing units and Vardhman Group invest $70 in Vardhman Camellias.
The market of real estate is expected to result in high
transaction activity, eminently in income yielding commercial office
equity during 2014.The country still needs to add number hospital and
educational institutes to meet the global average.
Mumbai has always highlighted a positive trend in the realty segment. The article discusses about the latest realty trends in two locations, Borivali and Goregaon.
There was a time when the real-estate sector in almost all over India, but cities like New Delhi, Kolkata, Mumbai and Pune witnessed some remarkable growth in terms of residential units in the year 2012. The leading real estate consultants Cushman & Wakefield conducted a study across eight cities, viz. Delhi & NCR, Ahmedabad, Bangalore, Hyderabad, Chennai, Mumbai, Pune and Kolkata. The residential units constructed in these cities displayed a decreasing trend by approximately 16% (162,000 units) last year as compared to that in 2011. Mumbai emerged as an exception, which showed a growth of 72%(22,423 units), while Bangalore experienced a highest decline of around 50% (16,543 units). Capital value in Mumbai continued to rank higher as compared to the national average.
One of the premium localities in central Mumbai, Borivalidisplayed highest capital values across the city and emerged as one of the hottest residential property destination. Not only the residential real estate, the commercial real estate segment also saw some positive trends. According to the market experts, the prices of properties in these areas are no less than 8,000-14,000 per sq. ft.The rates totally depend on the location of the property as well as the specifications of the property. Because of the increased demand of the residential and commercial properties, the prices of properties have already gone up by 25-35%.
The central Mumbai location is experiencing huge demand for housing mostly from those buyers who belong to middle-income groups. Factors like cost-effectiveness, calm atmosphere and good connectivity with other parts of the city make property in Borivali East a lucrative option. In addition, the connectivity of the locality with Mumbai and Thane is an added benefit. Another location of Mumbai, Goregaon, has seen some growth in the demand for residential units, is slowly emerging as one of the ideal places in terms of commercial realty, and has invited a number of corporate giants to establishments their bases.
The locality is strategically located and its proximity to Bandra-Kurla Complex and eastern &western suburbs of Mumbai has madeGoregaonan ideal real estate destination. Goregaon hosts a number of renowned educational institutions, shopping complexes, shopping malls,health-care centers as well as eateries. All these things contribute in the great living experience in Goregaon. The gree localities around Goregaon make it the greenest of all other surrounding suburbs, which are densely population and the dwellers hardly experience any greenery.
According to the market experts, the flats and apartments of area 2,000-3,000 sq. ft. category are available in a price range of Rs. 12,000-18,000 per sq. ft. Though this is costly, but if we compare this price to the prime locality of Mumbai, which is South Mumbai, the apartments are priced at a whopping range of Rs. 30,000-50,000 per sq. ft. Now a day, the properties in South Mumbai are available at no less than Rs 8-9 crores. The boom in the prices has made the buyers reluctant from investing their hard-earned money in South Mumbai. In the coming years, the prices of residential as well as commercial properties of Mumbai will soar and most likely witness the next economic boom cycle, and will enable the builders to launch a few new projects and thereby lead to an obvious hike in the prices.
Author Bio: Rashmi Karan writes on the behalf of 99Acres.com, which is the leading real estate portal providing genuine and accurate information about the current real estate trends regarding purchase and sale of both residential and commercial properties across nation. Such as Property in Kandivali East, Property in Chembur, etc.