ECONOMIC HIGHLIGHTS – INDIA
India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players and individuals into the market. No company, of any size, aspiring to be a global player, can for long ignore this country, which is expected to become one of the top three emerging economies.
India is the fifth largest economy in the world (ranking above France, Italy, the United Kingdom and Russia) and has the third largest GDP in the entire continent of Asia. It is also the second largest among emerging nations (these indicators are based on purchasing power parity). India is also one of the few markets in the world, which offers high prospects for growth and earning potential in practically all areas of business including Real Estate.
India began its economic transformation almost a decade after China did, but has recently grabbed just as much attention, prompted largely by the number of jobs transferred to it from the West. At the same time, the country is rapidly creating world-class businesses in knowledge-based industries such as software, IT services, and pharmaceuticals. These companies, which emerged with little government assistance, have helped propel the economy. (McKinsey Report)
India has population of more than 1.1 billion and its GDP is growing at a rate of more than 8% p.a. A growing number of multinationals are setting up offices in the country and most of the major ones in the world already have established a presence there. Jobs are plentiful. An increasing number of foreign nationals are arriving in India to work, and many Indian expatriates are also choosing to return and take advantage of the growing professional opportunities in their home country. This has led to a construction boom unparalleled in the history of the country in terms of sheer scale, complexity and quality. Billboards advertising new residential and commercial complexes are all over the cities, and the newspapers are also full of ads of residential and real estate listings. There is also a surge in retail development; shopping malls previously unheard of in India are sprouting up like mushrooms.
Again the same is happening with cinema multiplexes, which besides just showing films provide consumers with a shopping, dining, and entertainment outing that can easily span several hours. The boom in business has also lead to an increase in tourism, and resorts are another common building type being developed in large numbers. There are also entire new townships and cities being planned from scratch to cater for tourists as well as business professionals. In addition to the sheer volume and variety in construction, what is also striking is the marked difference in the style and quality of these buildings.
Average home prices have tripled over the past 3 years in certain major cities, buoyed by the second fastest growth rate among major economies after China (CB Richard Ellis, Property Consultants).
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