Why India is a Hub of Profitable Real Estate Investment?

According to a latest report of FCCI and Ernst and Young in the list of top nine attractive destinations for real estate investments, India is ranked as the fifth most attractive destination for future real estate investments. In this list China is on top spot, USA is on second followed by England and Singapore. Because of good economy development and improved real estate market index, India gain fifth spot as most attractive destination. On the other hand China remains attractive as an investment destination primarily due to its impressive economic growth record and favorable demographics.

If government of India allows real estate investment trust (REIT) and real estate mutual funds (REMF), India can overtake the Chinese attractiveness in real estate. Lack of source of finance in India is also one of the reason for making Indian real estate investment less attractive than other. So that government should promote some alternative source of funding this will be helpful in getting good response.

This is all about the Indian real estate position in the world and now I am going to explain you why Indian real estate property can be more profitable in future.

In India the price of houses are going to rise high because India will face shortage of over 26 million houses by 2012 and that’s why demand of houses will be more as compare to the supply.

“With India back on a high growth trajectory, demand for commercial and residential space is likely to witness an upward trend,” consultancy firm Ernst and Young said in a report.

Because of growing young working population, increasing urbanization, declining household size and improved availability of loans demand for residential property going to rise more high in future.

In India $1.2 trillion investment was needed to meet the rising demand for urban development said Co-chairman of FICCI Real Estate Committee Pranay Vakil.

He said that the urban population in India would nearly double to 600 million in the next 15 years from nearly 350 million now, and this would put massive pressure on urban infrastructure, including roads, power and water supply.

Dean Hodcroft, partner-head of real estate for Europe, Middle East, India and Africa at Ernst and Young, said India needed institutional reforms to attract more investments in infrastructure development projects...

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