The Indian real estate market is still in its infancy, largely unorganized and dominated by
a large number of small players, with very few corporate or large playrs having national presence. The Indian real estate market, as compared to the other more developed Asian and Western markets is Characterized by smaller size, lower availability of good quality space and higher prices. Supply of urban land is largely controlled by state-owned development bodies like the Delhi Development Authority (DDA) and Housing Boards leaving very limited developed space free, which is controlled by a few major players in each city.
Restrictive legislations and lack of transparency in transactions are other main impediments to the growth of this sector. Limited investment from organized sector has also hindered the growth of this sector. There is a thriving parallel economy in real estate, involving large amounts of undeclared transactions, mainly due to high stamp duty rates.
Overview of India's Real Estate Sector
As real estate construction and values have expanded in India — underpinned by healthy economic growth, and coupled with a series of IPOs by property firms — so in recent years has India's property sector changed substantially.
These trends of growth and modernisation are set to continue, with some market participants forecasting that real estate development in India will grow from US$42 billion in 2010 to US$90 billion by 2015. In addition, global capital has become more interested in Indian property and is seeking transparent and liquid ways to invest. Furthermore, with a more global property market, the level of competition in the Indian property business is rising, while the need for property firms to strengthen their operational infrastructures, personnel and finances to better compete is also becoming more acute.
In addition, reform to the Indian regulatory environment is underway. Perhaps the clearest example of this is the 1976 'Urban... [continues]
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