Modern
India is home alike to the tribal with his anachronistic lifestyle and
to the sophisticated urban jet setter. It is a land where temple elephants
exist amicably with the microchip. Its ancient monuments are the backdrop
for the world's largest democracy where atomic energy is generated and
industrial development has brought the country within the world's top
ten nations. Today, fishermen along the country's coastline fashion simple
fishing boats in a centuries old tradition while, a few miles away. motor
vehicles glide off conveyor belts in state-of-the-art factories.
Of
all the emerging markets that include Brazil, Russia and China, only India
is set to sustain high growth into the second half of this century. India's
economy is expected to be larger than Japan by 2023 and the US by 2042.
Against a background of dismantling barriers to foreign investment here
are some salient facts for potential investors:
-
India
has the world's fastest growing middle class estimated to contain
over 583 million people by 2025 up from 140 million today. The rise
of the Indian middle class has fueled such a huge demand for property
that the market is struggling to meet supply. Official government
figures show a shortfall of 20 million units. With such extra ordinary
growth in population and buying power anticipated, there is exceptional
potential for any investor. Source: Mckinsey Management Consultants
June 2008
-
The
average age of home buyers has decreased from 45 to 32 as the professional
young embrace the "buy now and pay back later" mindset.
-
Each
year over 200,000 additional highly skilled workers enter the market
demanding high spec housing at affordable rents in convenient locations.
With over half of India's current population being under 25, india
will have the world's largest population of workers and consumers
by 2010.
-
Direct
foreign investment tripled to $16 billion in 2007 and is expected
to double in 2008.
-
Property
prices in cities such as New Delhi and Mumbai have tripled in 3 years.
-
India
has a high number of English speakers and also a British based legal
and land registry system.
· Mortgage lending in India increased tenfold between 2000
- 2005, yet the ratio of mortgages to GDP remains low, which shows
the massive potential for investors in the property market in India.
"Analysts
estimate India's property industry will be worth $50 billion by 2010.
Property companies have plans in the pipeline worth up to three times
the value of all the projects they completed in the past 5 years"
Source: FT.com 2007
"The
growth opportunities on the Indian housing market are enormous. We do
not yet see house prices at their peak. Precisely because demand is driven
by households' real needs, the development so far remains healthy on a
national scale"
Source: Deutsche Bank