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News: 'Independent India' takes center stage

Wed, 15 Aug 07

India is set to make a triumphant return to the centre of the global economic stage, reports Assetz, in a week that brings about the 60th anniversary of the country’s independence from British rule...

Assetz has marked this occasion by announcing the launch of its new India division, hailing 2007 as the ‘year of India’. Their new offerings include investment opportunities for both Indian nationals and those who are not of Indian origin, through a series of individual properties and Real Estate funds.

Spurred on by its young working demographic and economically active population, India’s extensive IT and outsourcing industries are just part of the increasing demand for real estate.

Meeting demand

An additional 10billion square foot of housing is expected to be required over the next five years, to cater for new residents moving into Indian cities, with a further 400million square foot of new office space also expected to be needed in the next eight years.

The average price for an entry-level investment in one of India’s emerging cities is about £30,000 for a 1,250 square foot two bedroom flat. 

Nick Booker, Managing Director of Assetz India comments: “Property investment and property prices in India are booming.  Before the Industrial Revolution, India had the largest economy in the world.  Economic reforms, the IT revolution and access to investment capital has resulted in new opportunities for employment and rising standards of living.

“The transformation that has taken place in India over the last few years has been phenomenal. The economy is currently growing at 9 – 10% per annum – the equivalent of doubling every seven years.

Sustained prosperity

Mr Booker continues: “As a result, an increasing number of property investors are looking to capitalise on India’s emerging prosperity, with fast growing IT and retail sectors set to drive up the demand for more housing in a number of India’s key cities.”

While the mortgage market in India is growing rapidly, it still accounts for just 4% of GDP compared to a 50% average in developed economies.

Household savings currently make up 28.1% of India’s Gross Domestic Product (GDP), and round 50% of this is being invested in physical assets such as real estate.

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