Real Estate / Property / Infrastructure

We have a good experience in this industry

The real estate sector in India has come a long way from being dominated by a handful of players in the 90s to an expanding base of developers, investors and global stakeholders buoyed by the growing construction industry in the country. The sector has been undergoing corporatization and professionalization and recognized as a key sector contributing to the economic development of the country.

Key opportunities in the real estate market :

State governments and bodies like the Confederation of Real Estate Developers’ Associations of India (CREDAI) are hoping to crack down on unlawful and potentially dangerous construction practices with new requirements and increased transparency. The interest shown in the country by IT and retail companies will help increase property values in city centers. Increased competition between these companies in India could also aid growth in demand for high quality property. For the most part supply is continuing to match demand, but not surpassing it, keeping rents at the optimum level.

Key Risks to the Real Estate Market :

Fears remain over major Indian companies’ debt levels and whether interest rates will increase while they try to reduce them over the next year or so. The unstable market in the US and euro zone could cause international investors to reduce their activities in order to save capital. However, it is also possible these fears may drive investors into the Indian market. Raw material costs are high and increasing, which could slow construction and cause developers to reduce the number of projects they wish to invest in until levels stabilize.