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The recent boom in the real estate market has brought smiles on the faces of many builders in India. It has given them an opportunity to come out of their regional cocoons and take on a Pan-Indian outlook. Builders have also found the chance to diversify into the other verticals of the real estate industry Retail and Entertainment, Hospitality, IT Parks, Infrastructure and SEZs.
In fact, the Real Estate market has become so hot that major corporate houses like Reliance, Tatas, Sahara and Godrej have also jumped into the Real Estate bandwagon.
What are the factors favoring the growth of Builders?
- Lower interest rates, easy availability of housing finance, rising incomes, better job prospects and increase in the number of nuclear families have given a great momentum to the demand for luxurious houses, premium quality flats, independent homes, farm houses and penthouses.
- With the Indian tourism industry set to grow at a pace of 9.7% annually, builders in India are finding it an opportune time to foray into the hospitality sector.
- Higher disposable incomes, trend for organized retailing and opening up of FDI in retail have increased the demand for shopping malls, entertainment arenas like multiplex cinemas, amusement and recreational parks.
- Changes in the way people conduct business has led to the demand for aesthetically built corporate structures.
- Pro-active policies of the government like allowing FDI in construction and development sector and treating development SEZs as real estate property has further increased the prospects in this sector.
- Globalized Era has made it possible for builders to use the expertise of top-architects, engineers, managers and experts from the world over.
Given these factors major builders in India like the DLF Group, Raheja’s, Unitech Group, Omaxe, Parsvnath Developers, Ansals, Eldeco Infrastructures, Hiranandani’s and others have expanded their territories and business portfolios. Not only have the skylines of major cities changed but even Tier II cities like Mohali, Ludhiana, Sonepat, Panchkula, Pune, Surat, Coimbatore, Cochin etc are witnessing changes in their lifestyles. This has led to de-congestion of metropolis and planned development of small towns.
It is not just the builders who are benefiting from the boom; increased competition ensures that customers get International Standard products and world-class amenities.
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