With the growing global concern for economic development and economic growth in developing countries, private Indian real estate developers are well aware of the fact that they have an enormous opportunity to make a name for themselves in the rapidly developing commercial real estate markets of China, India and Southeast Asia. The government has recently announced a $500 million package of economic incentives for the private sector in the country. This follows the announcement by the World Trade Organization that India is expected to quickly become a high-income nation. To take advantage of this amazing opportunity, it is important that the Indian real estate developers take a step back and look at their business plans from an entrepreneurial point of view. There is no doubt that Indian private sector can be a major force driving economic development in any country.
The rapid development in the internet technology and related sectors has led to a tremendous change in the mode of operation in the private sector. Companies such as Google, Apple and Microsoft have entered into partnerships with several organizations to deliver advanced services to the consumers. This has resulted in increased competition among companies, which is resulting in a price reduction for the consumer. For this reason, many organizations are now offering affordable services to the customers through their websites. As a result, the demand for website development, designing and maintenance, has become extremely cost effective for the private sector organizations.
The recent slowdown in the construction industry has resulted in a slump in the market for real estate in India. In the past few years, most of the projects were initiated on the back of government support but the current economic scenario has changed. However, there are still private real estate developers in India who are focusing their efforts on providing affordable housing facilities to the people.
The rapid influx of the population from the booming neighboring countries has drastically reduced the demand for the construction of new houses and apartments. India is still waiting for its citizen to decide whether they want to live in the city or the rural areas. A major part of the population is settling in the cities, especially in the developed cities like Bangalore, Kolkata, Mumbai, Chennai, Delhi and Brasilia. However, there is no dearth of affordable housing in the rural areas. Real estate development in India depends largely on the state and the federal level, with the federal government playing an important role in ensuring that the real estate market in India flourishes.
According to estimates, almost Rs 15000 crores worth of real estate is expected to be developed in India in next few years. Besides, the prices of real estate are also increasing considerably. The prime focus of the real estate developers is commercialization of the real estates, which will in turn provide employment to thousands of professionals in the developing areas. This is why there is no dearth of vacant plots, lands and buildings in the urban centers.
The federal and state government have taken vital steps to mitigate the impact of global recession on the real estate sector in India. Through tax incentives, they are trying to encourage investment in the real estate market. Moreover, the central bank of India, in order to support the real estate development, has pumped in more funds to the banks and money lenders. The federal trade commission also acts as a catalyst to . . . . . . promote the development of the real estate market in India. The companies dealing in the field of real estate also take measures to develop their projects. In order to achieve the desired goals of the development, it is essential for the companies to choose developers/ Developers selected by them carefully.