India: a roaring 'tiger economy'

The world’s new ‘Tiger economy’ is on the brink of a property boom, claims one company...

After the 100% relaxation of foreign direct investment regulations last year, the high flying Indian economy has been further boosted by a veritable explosion in real estate investment with analysts predicting a seven fold growth in Indian real estate value from $12 billion to $90 billion by 2015.

Martin Bowen UK Sales Director of Profile Europe (UK) Ltd says, “The residential property market is experiencing exponential growth right across India, but especially in urban areas and those close to the government’s new specialised industrial zones.

“Recent figures cited by the Bank of Baroda’s Chief Economist show properties have appreciated by as much as 60% to 100% over the last 12 months in most towns. This phenomenal growth is being fuelled by a number of driving forces.

“Currently there is a shortfall of some 20 million units, this is largely due to 55% of India’s population being under 25 and the fact that the economy is booming and has resulted in a growing middle class, looking for quality accommodation because of growing disposable incomes.

“Add to this the growing mortgage market and declining interest rates which have made property more affordable despite actual property price increases.”

A Change in traditional values has also been instrumental with many people now wanting homes of their own. Communal home ownership is now giving way to the nuclear family structure. One only has to look how the growing middle class with its increased financial independence has brought down the average age of a new homeowner from 45 to 32 years of age.