Summary: The post LPG (liberalization, privatization and globalization) Indian economy has witnessed a spectacular growth in the real estate segment. The number of international players is increasing rapidly in this sector.

The Indian economy has witnessed crucial changes in the last 15 years. Simultaneously, all industrial sectors have felt the influences and after-effects of this positive atmosphere. Now, India is one of the fastest growing economies in the world, with an 8% GDP growth for last three years. IT, retail, infrastructure and industry; all these sectors have now attained a high altitude.

Indian Real Estate industry has flourished keeping pace with feel good economy. In the last fifteen years, and more specifically in the last 3 years, this segment has observed a boom phase. The graph is on the compounding increasing path.

The growth in the Indian real estate sector may be attributed to several factors such as economic reforms and liberalization, increased globalization, increase in business potentials, heightened equity market activity, increasing demand, enhanced transparency, legitimized funding and favorable skilled demographics. Reformative actions taken by the Govt. of India like opening of FDI in the Real Estate sector and Real Estate Venture capital funds have offered a drive to the boom. Now, this segment has become one of the highest investment generating avenues.

According to the recent survey conducted by AT Kearney, India is the second best investment destination after China. The magnificent FDI flow into the Indian real estate industry has transformed into an organized segment with global standards, contrary to the erstwhile industry that had been marked by fragmentation, disorganization and poor governance and unprofessional approach.

The credit for this metamorphosis must go to the significant pouring in investment, not only from within India but from abroad. The last couple of years have witnessed the increasing interest of international majors in investing in Indian real estate market. This keen attention has brought into focus the emergence of private fund pool in this sector. Now, the industry is growing at 20% per annum. This unabated growth has falsified the brows of skeptics who were worried that this spurt might be the end of the bubble. The second factor that plays a critical role in the current boom is the development of physical and social infrastructure. Residential, commercial offices, retail and hotels have their own place in the prime locations. The easy availability of loans has worked as a catalyst.