Not long ago this industry was overlooked by the investors, but the scenario has changed.
Investors have started taking interest in real estate industry.
Moreover, the real estate sector is also responsible for the development of over 250 ancillary industries such as cement, steel, paints etc.
A study by rating agency ICRA shows that the construction industry ranks 3rd among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.
A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times
Almost 80 per cent of real estate developed in India is residential space, the rest comprising of offices, shopping malls, hotels and hospitals.
According to the Tenth Five-Year-Plan, there is a shortage of 22.4 million dwelling units.
Not only the demand the Indian construction industry is doing good on the supply side.
Though the recent recession might make it look like a bad investment but new real estate investment funds are promising bright future.
Also despite the situation now, the demand in major cities will grow continously and with many major players from other industries entering real estate, the future of real estate seems to be bright.
