Dynamics of Indian Real Estate Industry

By: George Gonigal

With a changing rupee to dollar equation and a dent in the software revenues from India, shouldn't Indian real estate industry search for alternate drivers, other than IT & ITES? Here we bring you the buzzing real estate news from India:

The IT sector which has been driving the real estate in a big way with an annual demand of 30 million sq ft may be under threat and thus real estate. According to Pranay Vakil, Chairman - Knight Frank India Pvt. Ltd. who spoke on the impact of Macroeconomic policy of RBI on Real Estate in India and expectations there from at Credai's NATCON pointed out that property developers in India need to think of alternate growth drivers- 'What happens if rupee to dollar value come to 35 and then there will be a slowdown in the IT sector and hence demand for real estate. Developers need to think of alternate growth drivers.'

Information Technology has been one of the biggest drivers of real estate in India so far. Take the case of any IT city such as Gurgaon, Hyderabad or Chennai or Pune. The real estate of each of these cities has witnessed sea change on the back of IT boom.

Say in Pune, it was with the coming of Hinjewadi IT park, that the property prices in the neighbouring residential areas have tripled in last two and a half years. The IT park spread over more than 200 acres and employing over 1 lac employees is driving the residential markets of Wakad, Baner and Bavdhan.

According to real estate consultant Vishal of Expat Properties Pvt Ltd,'These areas started as villages and now have been converted to cosmopolitan areas. What was available for Rs 800-1,000/sq ft two and a half years back, is now for Rs 3,000/sq ft in these areas.' Baner has some 50 new projects in the pipeline with Phonenix Multicon, Aditya Shagun and Paranjpe being the prominent real estate developers. Waked also has some 25 new projects lined up in the residential property sector.

For more details on Real Estate News India, log on to magicbricks.com

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