Investment in Indian real Estate !!

Demand for office space in India from multinational companies has grown from an estimated 3.9 million sq. ft. in 1988 to more than 16 million sq. ft. in 2005, according to Cushman & Wakefield. Over the next two years, demand is expected to grow 14.5% annually to just over 20 million sq. ft. per year.

Investors in Indian real estate can expect net operating income to increase a minimum of 10% annually based on increasing rental rates. Although 80% of the demand for office space is created by the IT sector, other industries such as banking and financial services, biotechnology and pharmaceutical are growing.

The expansion of new and existing companies is creating a growing middle class with significant investment power in Indian real estate. Around 200 to 300 million of India's population can be described as middle class, which translates into expanding levels of disposable income that can be spent on upgraded housing, entertainment and retail goods and services, as per Indian real estate experts. India's strong economic growth and growing middle class are collectively driving a change in cultural values. Earlier a lot of people stay with their extended families, but today a lot of young people are buying their own homes and adding that industry experts have estimated that India suffers from a shortfall of 20 million homes in major metro areas. The housing shortage translates into an investment in Indian real estate of $325 billion to $350 billion just for residential development alone.