The global scenario for real estate business is improving everyday. People are investing and getting high returns in this field. High value projects are being started everyday. Contributing over 8% to the GDP of India, real estate is been the most promising business fields in the past decades. With changing economics of India this trend is certainly going further. Small cities have also seen a big growth.
Major reason behind this is the changing psychology of the modern middle class India. People are opting to have their own houses rather than living in a rent house. Easy home loans by many companies are also helping the cause. Easy financing systems and easy loan repayment option s are taking the Indian class to their own house. There is been huge rise in the price of plot in the city and the suburbs. The price is been sky high and the plots are going for sale everyday. Many people are selling their own houses to get some good cash and the real estate proprietors are also ready to pay them a good amount. The reasons of this humongous growth are deep rooted. The policies adopted by the banks and the business houses provide a great stimulation to this growth. Banks have given much encouragement for investments by providing easy home loans. The companies are also promoting the new buildings in unique way; they are also providing many additional facilities to attract people. Owning own house is very costly in this market, especially if one considers the high prices of the land. But flats give this great option to share this cost of land. A common only requires three or four rooms to live, and a flat has many rooms as they are multi storied, thus the expenses of land is distributed among many individuals and that downs the cost.
Growth In Real Estate Business
Most of the modern city families have more than one earning member thus families are not now dependent on one earning member. It is making easy to bear the burden of EMI. It is proving to be a quite good help to handle the pressure of EMI regarding the home loans. People are ready to take the loan for their dream house. This is keeping the demand high. There is also another reason; modern culture has witnessed the evolution of nuclear families. The join families have been divided and thus the demands for houses have seen a lift in the past decades. People are more inclined to have their own property, to have their own house; it gives them the freedom to decorate it as they wish. The modern consumer society and changing mentality is a key reason behind this growth.
One of the safest businesses
Most of the time it is seen that much of the burden is being beard by a small group of investors. Many investors only put the money and take the profit. Thus it is very good opportunity for the investors to put their money by making small groups to enjoy a good profit. Another point in real estate business most of the time all the properties are booked before they are completed this reduces the risk of business. This positive side of the business has been a key to the large flow of capital in real estate business. People are investing in large numbers by making small groups and taking up ventures.
It can be said that in the coming years real estate is going to continue its dream run, big companies are making huge investments in this sector. The current government are making new amendments that will support land take over and will make the process smooth thus it seems it is a high time that an investor should think of investing in real estate. Easy rules by new government and the new outlook will help the business in near future. The employment in real estate has also risen; availability of cheap labour is also a big reason behind the rise of business.
Though there are legal issues involved regarding real estate business but most of the time investors are able to tackle them with good guidance thus it is advised to take the dip to enjoy the water.