subject: real Estate In India Is Pretty Expensive Know Why?? [print this page] Real estate in India is pretty expensive and hence the buyer thinks twice while finalizing the property he is going to possess. Prices of commercial as well as the residential property in India are appreciating at a very rapid pace.
Mumbai and Delhi are amongst the 10 most expensive cities in the world. Property in Delhi and Mumbai is experiencing escalation in price because of the growth in the infrastructure sector. The suburbs area is developing at an extensive rate bringing the escalation in the price.
In 2002, when the IT industry flourished in the country the rise in price has seen more apprehensively. After the emergence of this boom in the market the real estate industry has also start flourishing as the requirement of commercial as well as residential complexes has suddenly gone up. Lets discuss the reasons which make real estate in India a pricey affair:
Demand and Supply Force: Population of India is budding every second and as the economy has also experienced the boom, now everyone is up for buying a home for themselves. This demand has been increased in a fashion that the builders are unable to match it with the supply, in response price rise in property.
Investment by NRIs: The boom in the economy, flourishing GDP and liberal government policies are also attracting the Non-Resident Indians to invest in this lucrative asset for future benefits, which ultimately resulted into price rise in the property of India.
Foreign Direct Investment: Since, the government has become liberal about the fact that they will allow the MNCs to invest in the country, the prices of commercial land has gone up by many folds.
Dearth of Land: Property in Mumbai is still the most expensive throughout the country. Being the financial capital of the country it has got a huge population of human resource and to serve those people a dwelling is a must and hence the prices of the real estate in Mumbai is keep on escalating.
The Big Bang IT Theory: The IT sector accounts for almost 60%-70% of demand for commercial real estate in India. According to NASSCOM, this sector employs 1.63 million people and this number is likely to grow by many folds. Hence, demand of property will surge and the supply will cost even more.
Government Scheme: After the implementation SEZ act, the real estate in India has got a major boost. The prices of the adjoining area of the metropolis have kicked up overnight. This was another pin in the coffin of the real estate sector which is booming at a much faster pace.
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