The Indian economy and the real estate India in particular are high on its ride to prosperity. As India's economic growth curve rises, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. Indian real estate has huge potential demand in almost every sector, but especially commercial, residential, retail, industrial, hospitality, healthcare etc. But maximum growth is attributed to its growth from the booming IT sector, since an estimated 70 per cent of the new construction is for the IT sector.

The booming IT industry has also resulted in a large section of young investors who with high-income jobs chose real estate as an investment option. With the emergence of this new customer segment the residential sector is not only witnessing huge growth, but with the easy availability of finance in India, the average age for ownership of new homes is drastically declining. The average age of a new homeowner is now 32 years compared with 45 years a decade ago. While most funds were initially floated by financial institutions and banks in India such as HDFC, ICICI Bank to name a few, real estate developers like DLF Universal and even retailers like Pantaloon have now entered the arena for creating more retail facilities and have received a strong response from investors.

Another emerging trend in the real estate sector in India is investment in the hospitality or hotel industry. Diversifying from the initial interest of the real estate developers in the building only residential properties and offices, they have shifted their strategy to malls and hotels. The exceptional boom in inbound tourism and the IT sector has also led to an unprecedented shortage of rooms, with hotels all over the country witnessing their highest-ever occupancy rates. New genre malls are now developed with customized preferences such as automobile mall, the Gold Souk and wedding mall, which are one-stop shopping destinations for what their name describes.

Finally, as FDI in India makes inroads into the Indian real estate and as corporatization gains importance, the rating for projects and builders is going to increase. Moreover, riding on total tax exemption, real estate developers are eyeing special economic zones (SEZs) as their next destination as most of the real estate developers are looking at SEZ as an extension of their business in related area where the land comes cheaper. According to the Vision 2020 document released by India's planning commission, the country's urban population is expected to rise from 28 per cent to 40 per cent of the total population by 2020. And as future growth is predicted to be concentrated in and around 60 to 70 large cities with a population of one million or more, realty prices in India's premier cities are at a all time high.

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