2015: an indian odyssey

One high profile company has made a jaw-dropping prediction about the future of India’s property market…

In a quite stunning display of market optimism, Merrill Lynch has predicted a 700% increase in the Indian property market by 2015, a return that would be jealously sought after in the UK.

So what is the basis for the company’s prediction?  Years of strong economic growth and the rise of the Indian middle class has fuelled such a huge demand for property that the market is struggling to meet supply.

With official government figures showing a shortfall of 20 million housing units, the Indian property market holds immense potential for investors. This growth is underpinned by the broader Indian economy’s performance, which has grown at an average of eight per cent over the last ten years and is forecasted to overtake the United States by 2050.

Profound societal changes

India’s booming economy reflects the profound changes occurring in society. With over half of India’s current population being under 25, India will have the world’s largest population of workers and consumers by 2020.

Increased urbanisation and modern young Indians preferring to live on their own means demand for housing has never been higher. Mortgage lending increased tenfold between 2000 – 2005, yet the ratio of mortgages to GDP remains low, which shows the massive potential in the property market.

Andrew Fassnidge, Managing Director of property portal Navyroof.com enthused: “In the last two years alone, property prices in India increased by 70 per cent. Industry commentators are mooting that whilst the USA and Europe look to be involved in an economic downturn, emerging markets such as India, may be the ‘credit crunch proof’ economies. Anyone with even a small amount of capital should look to India above other foreign property investments because the predicted returns are so huge.”