Real Estate Scenario in India
The real estate industry in India is the second largest employer with an estimated size of USD 12 Bn. It is growing at a rate of thirty per cent per annum Real estate has been one of the most preferred sectors for PE investments in India with deals worth USD $0.65 Bn in the year 2009 Robust economic growth, improving demographics, increasing demand in the services, and organized retail, hospitality and logistics sectors are the key growth drivers for the real estate industry The housing sector, in particular, contributes to five per cent of the country’s GDP which is expected to rise to six per cent in next 3‐5 years timeframe Inspite of an annual growth rate of thirty four per cent for past 5 years, the housing sector faces a shortage of around 24.71 million housing units which is estimated to reach 26.5 million by 2012 99% of the shortage in housing units is faced by the people belonging to Economically Weaker Sections and Low Income Groups Development of low‐cost affordable housing in sub‐urban areas is considered to be a potential solution to this problem Such a project offers good return on the investment due to economies of scale and lower cost of land for the development activity