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Incredible India: Staggering amounts of opportunity in property market

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Incredible India: Staggering amounts of opportunity in property market - India - property market - analysis


Despite the continuing turbulence and uncertainty in other parts of the globe, two economies – India and China – will continue to grow at an annual rate of 8-10%. In fact, by 2020 India will become the 3rd largest economy after China and the US.



What will give India’s economy such an edge over the next decade? Actually, it enjoys many advantages that encompass an ever-increasing per capita income and a concurrent domestic consumption pace, which nevertheless leave in their wake a substantial rate of annual savings. Moreover, India’s infrastructure investments will have increased massively by 2020, significantly enhancing its attractiveness for investment.

The implications of such growth potential on the Indian real estate industry are fairly obvious. There is, beyond any doubt, a staggering opportunity in the Indian property sector over the next decade. The writing is on the wall even now – consider the fact that the value of investment-grade real estate under construction in the country crossed $100 billion at the end of June, 2010. Only China can compare with India on this count.

Another chapter in India’s rapidly developing success story is the IT sector, which has been a major driver of the country’s economic growth over the past few years. By 2020, the current size of the IT / ITeS market in India will have grown from the current $67 billion to $225 billion. Simultaneously, the markets for hardware and electronics will increase from the existing $45 billion to $400 billion. In fact, domestic banks will have to scale up their asset sizes five times over next 5 years in order to cope with this increasing demand.


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