Growing Economy Makes India A Hotspot for Real Estate
By Riti, Section Gurgaon Real Estate Property
Posted on Tue Jul 08, 2008 at 04:27:12 AM EST
As property prices in India continue to rise, wealth management group Merrill Lynch has predicted a 700 per cent increase in the Indian property market by 2015.
Furthermore, a report by investment bank Goldman Sachs suggests India could overtake Britain as the world's fifth largest economy within a decade, and by mid-century, may even surpass the US to become the world's second biggest economy after China.
India is already achieving GDP of US $1.50 trillion, making the world's second-fastest growing economy. Bolstered by strong domestic demand, economic growth, corporate strength and huge spending on infrastructure, India's property market is expected to be relatively unaffected by the global credit crisis.
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This strong economic growth is partly a reflection of India's unique demographics; - over half the current population is under 25, meaning that by 2020, the country will be home to the world's largest population of workers and consumers.
Earnings are on the rise too, making the demand for small apartments likely to mushroom as the country's young employees seek more independence. This huge mass of ambitious young Indians are already rejecting the traditions of living at home in favour of buying properties of their own.
Investment property specialists David Stanley Redfern Ltd have identified Rudrapur, in the Udham Singh Nagar district of Uttarakhand, as the next buy-to-let hotspot. Properties in the municipality are set to move quickly as investors seek to benefit from an area hoping to attract just some of the 2.5 million students that graduate from Indian universities each year.
Designated a Special Economic Zone by the government, the massive industrial estate on the outskirts of Rudrapur is home to global corporations and an ever increasing number of factories. By December 2008, 50,000 people will be employed here directly and a further 250,000 indirectly, boosting potential rental revenue for homeowners in this part of India.
Source:Homesworldwide.co.uk 8thJuly2008.
