Property in India has had its up’s and down’s for the past two years. Real estate in India has recently been
in the news mostly for the wrong reasons. Specifically, luxury property
in India has received a great deal of bad press of late. To better
understand what is going on it is necessary to know the following facts and
what their ramifications are for real
estate in India.
Rise of the Ultra Rich
India’s GDP is expected to be 7.1 percent in this coming year. The
number of Ultra HNI’s in India has jumped from 1.83 lakhs in 2014 to 2 lakhs in
2015. Currently, the number of Ultra HNI’s in India stands at 2.36 lakhs and
this number is expected to grow to 4.83 lakhs by the middle of the next decade.
Rising GDP in India
The per capita GDP of Indians has risen to 2,000 dollars per annum
and within 3 short years, it is expected to grow to 3,500 dollars per annum. A
rising income will translate into demand for more high-end property in India. Post demonetization
the price of luxury property in India
has corrected and prices are not expected to drop any further. Furthermore,
wealthy investors and NRI’s realise that this is a good time to invest in realestate in India. Real estate sites in India make it
easier than ever before for NRI’s to buy a home in India and also to steady
earn rental income from their property
in India.
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Size of Indian Real Estate
The size of the Indian real estate market is expected to grow from
93 billion dollars in 2014 to 180 billion dollars in 2020, and, rising from 5 percent
in 2014, real estate in India
will account for 13 percent of the country’s GDP by the end of this decade.
Luxury properties in India make up close to 4 to 5 percent of the real estate
sold in India and this number has been gradually increasing and will make up a
larger share of India’s property market.
Putting it Together
The numbers of luxury real
estate in India are expected to continue to grow at a fast pace. While
there was a drop in demand post demonetization for mid-segment houses, the
demand for luxury houses did not fall as precipitously. In the future demand
for housing will be driven by the more than one segment of the populace; for
instance, demand for affordable housing, the supply of which is being given
special attention by the government, will be driven by lower segment
households. The demand for luxury property India will also increase
since NRI’s now have greater faith in the India growth story and the number of
rich is growing every day in India. The growth of property sites in India that serve NRI’s is a testament to the
rising demand for luxury property in India
from NRI’s. Middle-income real estate
in India has and will continue to be in great demand.
Demand for luxury real
estate in India has not dropped as the numbers of those who want to, and
can own luxury property in India
are here to stay and to prosper in their numbers.
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