all sectors of indian property market set to thrive
News Posted On: 11 May 2011
It's estimated that the Indian economy will continue to grow at around 8% to 10% each year, and that by 2020 it will be the third largest economy in the world after China and the US. This means that domestic consumption will increase as will per capita income, and there will be substantial investment in India's infrastructure.
This will all have a significant effect on the Indian property market, and this can already be seen as the country had an estimated $100 billion worth of investment grade property under construction at the end of June 2010, a figure equalled only by China.
India also has a thriving IT sector which has contributed enormously to the economic growth of the country over the past few years. It is currently worth $67 billion but it's estimated this will increase to $225 billion by 2020. At the same time the markets for electronics and hardware will increase from the current $45 billion-$400 billion. This is already affecting the commercial property market which has doubled from a low point of 20,000,000 ft.² to 40,000,000 ft.² this year, and is set to increase to 45,000,000 ft.² by 2012.
This will also have a knock-on effect on the retail market which is expanding by 15% every year. Because of its rapid growth, the sector is expected to increase from its current value of $25 billion, to $250 billion by 2020 and as such will need a massive amount of retail space.
The Ministry of Housing has already predicted there will be a shortfall of 26 million residential units by next year. Due to rapid population growth and expanding lifespans. it is expected that the shortfall will only expand. Some even predict that there will be up to another 215 million people living in Indian cities by 2025. A population growing so rapidly in affluence and numbers can only mean good news for property investors, especially in a country with such a huge housing shortage already.
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