Real estate business in India

REAL ESTATE sector in India is witnessing a new revolution that is driven by favorable demographics, booming economy and liberalised Foreign Direct Investment (FDI) regime.

A crucial factor behind over all development of any country is considered to be mostly depending on the accelerated growth rate in real estate sector. Dynamic patterns of using land and its multi diverse practices have enabled the economic growth more vibrant than the decade went past. Both commercial and residential properties are more in functional practice to make economic growth of the country easier. Further the development of commercial properties has played a significant role in our Gross Domestic Product (GDP) growth in recent times.

Commercial property is like any type of property that is commercially used for earning profit. The central point of commercial property is targeted towards economic and business activities. Commercial property is always meant for business purposes and revenue generation. Commercial property real estate is specially designed for commercial, industrial and institutional activities.

A wide variety of real estates included into commercial properties are specially used for business and industrial activities. All types of apartments, office buildings, commercial centers, shopping malls, warehouses, institutional buildings and distribution facilities come under the category of commercial properties. Real estates used for scientific research and development activities are also considered as commercial properties.

There are several major elements responsible for such mushrooming growth in real estate commercial sector. Service sector with high growth rate and IT sector, increasing multi-level economic activities and higher public-private participation in industrial sectors are some of the basic reasons behind booming commercial properties in India.

Led by mushrooming information technology industry and organised retail, growth in commercial office space requirement is increasing day by day. For example, Information technology (IT) and Information Technology Enabled Services (ITES) alone is estimated to require 150 million square feet across urban India by 2010. In a similar way, the organised retail industry is likely to require an additional 220 million square feet of land by 2010.

Real estate business in India