Conclusion

[br] Indian economy is going thorough a very good time and is posting new highs on a regular basis. The per capita income growth rate during 2006-2007 was 13%. As the real estate sector has a high correlation with the overall economic growth of the economy, so the expansion of this sector is also phenomenal.

[br] Indian economy is going thorough a very good time and is posting new highs on a regular basis. The per capita income growth rate during 2006-2007 was 13%. As the real estate sector has a high correlation with the overall economic growth of the economy, so the expansion of this sector is also phenomenal.

Two main reasons behind the boom in real estate sector in India are:

• High rate of growth of the industrial sector amounting to 10.8 % during 2006-2007. In addition, the manufacturing sector grew at the rate of 11.8 % which is itself a commendable performance.
• Inception of L-P-G policy has helped the contractors and the builders in bypassing the red-tapism as well as the “license-raj”. Allowing the foreign investors to invest in the mega real estate projects in the year 2002 has broadened the scope for growth in the same.

Some of the facts related to Indian real estate sector

• The worth of Indian real estate has been estimated by Manoj Vaish, President and CEO of Dun & Bradstreet to be around fourteen billion US dollars. According to him this sector is growing at a tremendous speed of 30% per annum. The main reason behind this growth is the demand generated by the off-shoring businesses.
• The stratified picture of the demand pattern of the real estate market in India shows that eighty percent of it comes from residential real estate sector and the real twenty percent from the commercial real estate one.
• Real estate market boom in India is making the Asset Management
• Company(s) like SBI, TATA, LIC, etc. to float new mutual funds investing solely in the stocks of the listed real estate sector companies.
• The most significant phenomenon seen in this sector is the speculative investments happening in this sector even for the short term. This has prompted the contractors and builders to add an additional clause for holding the concerned real estate for a minimum period of 1 year.
• The future prospect of this industry is looking very bright because of the retail sector boom that India is going to observe in a couple of years. Big players in the retail sector like reliance, Bharti, Walmart, etc. have already making their foray in India either directly or through back door channel. This would require the construction of a lot of shopping complexes and retail outlets which would only help in mopping up the growth rate of the real estate sector in India. Organized Retail sector’s contribution to the growth of real estate sector has been estimated to be 49.53%.

[br] Contribution of the Indian real estate sector to the GDP of the economy has been calculated to be around 7 %. One of the very important indicators for real estate sector growth is the demand for loan for the same. It has been observed that the total disbursed amount of loan for real estate purposes in the year 2006 has increased by almost 12000 crores from the previous year. But this enthusiasm came out to be too much for the apex bank of India as it felt that the economy is becoming overheated. So, the frequent churning of the repo and reverse repo by RBI has cooled down the demand for home loans. The rate of interest rate
associated with the home loan is now at 9.25-10.5 level.

Real estate sector has come up as the second largest employment generator in India coming only after agriculture sector. It has been estimated that 15% of the educated workforce are attached with real estate sector in India.

Positive steps taken by the Government of India for for the development of Indian real estate sector The most significant step taken by the Indian government in this end is the granting of permission for 100% FDI in Real estate sector Government has succeeded in introducing a trust called Real Estate Investment Trust (REIT) which has made it possible for the small investors to earn a formidable dividend from the real estate investments.

Some of the regressive aspects that are associated with the Real Estate Sector in India The structure of the Stamp Duty required to be paid are not standardized yet all over India. Though according to the Urban Development Ministry the stamp duty has to be rationalized at the rate of 5 %, differential rate are applied in different states which most of the times cross the 5% mark. Urban Land Ceiling and Regulation Act is one of the major obstacles in the path of real estate growth in India because it barres real estate development on valuable piece of land.

Some of the Reputed Real Estate Companies In India are 21st Century Realtors, Adhiraj Construction Pvt Ltd., Adarsh Group, Jhavar and Associates and many more.