Engulfing the period of stagnation, the evolution of real estate sector has been extraordinary, impelled by, growing economy, favorable demographics and liberalized foreign direct investment regime. However, now this constant phenomenon of real estate sector has started to exhibit the signs of reduction.
What can be the aimss of such a trend in this sector and what future course it will take? This article tries to find answers to these questions. You can also hire best real estate agent via http://www.yanrealty.com/.
Since 2004-05 Indian reality sector has marvelous growth. Registering a growth rate of, 35 per cent the realty sector is predicted to be worth US$ 15 billion and anticipated to grow at the rate of 30 per cent annually over the next decade, enticing foreign investments worth US$ 30 billion, with a number of IT parks and residential townships being built across-India.
The term real estate covers suburban housing, commercial offices and trading spaces such as theaters, hotels and restaurants, retail outlets, industrial buildings such as factories and government buildings. Real estate includes buy sale and development of land, residential and non-residential buildings.
The sector accounts for chief source of employment generation in the country, being the second major employer, next to agriculture. The sector has backward and forward linkages with about 250 ancilary industries such as cement, brick,steel, building material etc.
Therefore a unit increase in expenses of this sector have multiplier effect and capacity to generate income as high as five times.In real estate sector main component comprises of housing which accounts for 80% and is growing at the rate of 35%. Remainder consists of profitable segments office, shopping malls, hotels and hospitals.
With the Indian economy rolling at the rate of 9 % accompanied by rising incomes levels of middle class, growing nuclear families, low interest rates, contemporary approach towards homeownership and change in the attitude of young working class in terms of from save and purchase to buy and repay having contributed towards soaring housing demand.