The losses of industry players were limited by the timely intervention of RBI, which increased the interest rate since 2006. The sector remains unstable. However, driven by the global economic recovery and macroeconomic and sector-specific factors, experts believe that capital will begin to flow into this sector. In addition to the global economic recovery, the following are the indicators of the growth of this sector in the near future:
Industry experts estimate that by 2010, India’s IT and ITES sector will need approximately 150 million square feet of official space.
Growth in the organized retail sector will provide a significant boost to the commercial real estate sector, which is expected to demand 220 million square feet of additional commercial space in Tier I and Tier II cities.
According to the government’s Tenth Five-Year Plan, there is a deficit of approximately 22 million residential units and in the medium and long term, around 90 million housing units will have to be built, especially for low- and middle-income families. Housing Development & Infrastructure Ltd (HDIL) and the Mumbai Metropolitan Development Authority (MMRDA), together plan to build a residential and commercial complex in Virar, a Mumbai suburb at a cost of around $ 1.49 billion.
The introduction of REMFs (real estate mutual funds) and REITs (real estate investment trusts) will definitely have a major impact on real estate by helping players determine prices. According to CRISIL, REITs have the potential to reach the size of $ 1.4 billion in the next 3 years.
The following section contains some of the new projects that are expected to be carried out by private property developers:
* Tata Housing Development Company is expected to build around 1,300 low-cost residential units in Boisar, 100 km from Mumbai
* Atlas Group plans to diversify into Indian real estate and invest $ 201.51 million in Kerala over the next few years.
* Tata Realty and Infrastructure (TRIL) will invest approximately $ 4.2 billion for the construction of special economic zones, roads and other projects of the main sector
* All major real estate players, including DLF, Unitech, and HDIL, have large housing projects lined up for discounted properties.
* Avinash Bhosale Group (ABIL) will invest $ 126.25 million in Pune, Nagpur and Mumbai to develop 5-star hotels.
* Marriott International plans to open 24 new properties in India over the next three years
* Cinepolis, a Mexican global multiplexing operator, plans to invest around $ 357.7 million in India and open 500 cinema screens in the next 7 years for its film exhibition business.
