Advantage India : Real estate is one of the fastest growing sectors in India. Market analysis pegs returns from realty in India at an average of 14% annually with a tremendous upsurge in commercial real estate on account of the Indian BPO boom.

Lease rentals have been picking up steadily and there is a gaping demand for quality infrastructure. A significant demand is also likely to be generated as the outsourcing boom moves into the manufacturing sector. Further, the housing sector has been growing at an average of 34% annually, while the hospitality industry witnessed a growth of

10 - 15%  last year.

Apart from the huge demand, India also scores on the construction front. A Mckinsey report reveals that the average profit from construction in India is 18%, which is double the profitability for a construction project undertaken in the U.S.

Only NRIs/PIOs are permitted to invest in real estate and housing property, while infrastructure projects, integrated townships and other projects involving large infusion of foreign investments have been opened up for other foreign investors, albeit subject to various conditions.

Also, in terms of opportunities, there is huge potential with regard to redevelopment of real estate. The regulations, unfortunately, do not cover such projects. On account of the growth and economic opportunities of this sector, a clarification on these ambiguities is a  must.

To conclude, the India real estate sector promises to be a big draw for foreign investments into  the country. Real estate investment requires a longer term commitment from investors and the fact that foreign investors are willing to commit billions of dollars in this sector, demonstrates their growing confidence in the India economy. Also if channelised appropriately, the Indian realty sector could catapult the growth of several other sectors in India.