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A good performance of a country’s industrial sector indicates the rate at which it is progressing. Data for August 2009 of India’s industrial sector showed a year-on-year growth of 10.4% in output.
On seeing this data, C Rangarajan, chairman of the Prime Minister’s economic advisory council suggested that during the current financial year, industrial growth would be 7.5% to 8%. He also projected a GDP growth of 6-6.5% for the year.
The sectors of manufacturing, mining and power production grew at 10.2%, 12.9% and 10.6% respectively in the month of August.
Besides the growth in the industrial sector, the real estate sector has also shown growth in this financial year. In the second quarter of financial year 2009-2010 the real estate sector saw a growth in demand of 15%.The Indian commercial office market saw 10 million sq feet of office space commitment pan-India in top major IT cities including Mumbai and Delhi. Out of this, the bulk of the demand (almost 70%) came in the second quarter. In the residential front prices were dropped by 40% between January to March this year. With the government’s efforts to reduce interest rates, residential demand picked up close to 10% in Q1 2009-2010.
* Industry experts said currently 30% of the demand for residential space lies in the price bracket of Rs 5-15 lakh, 26% between Rs 15 and Rs 25 lakh, 22% in the bracket of Rs 25 and Rs 40 lakh, 12% in the range of Rs 35 and Rs 50 lakh, whereas a mere 6% is for properties priced above Rs 50 lakh.
Looking at the current market momentum, demand for residential properties is expected to rise further between October to December.
As the industrial sector progresses it is bound to have a positive impact on the economy of the country and this is what led the chairman of the Prime Minister’s economic advisory council to project a GDP growth of 6-6.5% for the year. It is a good sign to see that the real estate sector is seeing an increase in demand in the 2nd quarter of this financial year. As the demand for residential properties is expected to rise between October to December, Expat Properties invites you to invest in its various real estate projects (plots and apartments) located in the West and South of India. Being reasonably priced and located amidst infrastructural and other developments, the properties have the potential to bring appreciation in the immediate future.
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