Biotechnology to contribute to the Indian Realty boom!!

Biotechnology is the next. After the Information technology, the industry that is fast thriving is the bio-technology sector. Bio-technology sector is all set to bring another boom in Indian property market.

According to the data showcased by real estate consultant, Jones Lang LaSalle Meghraj the biotechnology industry is expected to need around 100 million sq ft of space in the future. Thus the real estate industry is believed to gain a lot by the development of biotech parks and manufacturing units as per the report.

Currently there are six biotech parks in India and around nineteen are to be developed. Indian realty is growing at tremendously and also attracting large investments with a market size currently being $12 billion (Rs 47,880 crore). The biotechnology industry furthermore is giving a hard push to the demand for quality commercial spaces as the estimated demand from the technology sector alone is likely to be 150 million sq ft of space by 2010.

To add to the fact that few years down the line demand creation for commercial space by the technology sector will be huge, the overall investment in the sector has also seen escalation. The investment has grown from $ 137.2 million in 2003 to $366 million in 2006. Out of the huge investment being made in the bio technology sector will go in setting infrastructure facilities and development centers. The major areas where the potential is and is needed to be tapped are cities like Hyderabad, Bangalore, Chennai, Mumbai, Pune, and National Capital Region.

India for quite sometime has been one of the most sought after destinations in terms of real estate investments and now it is to become a center of biotechnology industries.

Contributed By : Karan Vinayak

Indian Realty - Good news pours all the way

Recently, when my impression was that Indian Realty sector is on a slowdown, I got some reports, which made me to beleive it isnt really the case.

The Indian Realty Sector is doing wonders. Though there are certain factors that pose to damp the sector like fluctuating interest rates on home loans, saturation in development phase, and schedule of implementation of the projects derailing sometimes yet there are factors that are undoubtedly pushing the realty sector to that cloud nine.

Good GDP growth, increasing affordability, conducive demographics, rapid urbanization, and increasing mortgage penetration, besides an improving regulatory framework are some of the factors that are incessantly fuelling the growth and are the long-term drivers too.

The list of factors that are responsible for the growth of the realty sector are not limited to the above mentioned ones but the list has a lot more and is expected to go lengthier with every passing day.

The National Housing Bank indicates that there is a shortage of 4.5 million residential units in urban India as the urban housing shortage is determined at 22 million units.

The commercial property market in India is largely benefited by a high proliferation of IT companies which are accountable for 60-70 per cent of the total demand unprecedented hike in prices. To add on this the commercial sector is expected to grow with much higher pace as the information provided by Nasscom, the IT/ITes sector employs 1.63 million people and this number will grow by 0.67 million professional by 2010.
In order to meet the demand created by IT sector, 95-110 million sq ft will be needed by 2010.

As far as Indian retail industry is concerned, its size is believed to be $250 billion and the sector is likely to grow at the rate of 10% per annum which will too have a considerable impact on the realty sector.

Taking into account all the above mentioned factors that realty sector will add another feather to the hat of India.

Contributed By : Karan Vinayak