Huge
investment
potential
exists
in the
Indian
retail
industry.
According
to the
estimates
by the
consultancy
firm KSA
Technopak
around
$25
billion
will
flow
into the
retail
sector
in the
next
five
years
taking
the
organized
portion
of the
business
from a
measly 3
percent
to 14
percent.
The
Indian
real
estate
industry
is
poised
to
emerge
as one
of the
most
preferred
investment
destinations
for
global
realty
and
investment
firms.
The
industry
is
poised
to
experience
a
landscape
change
and the
key
trends
that
will
shape
the
business
in the
next
three to
five
years
are
enlargement
of
project
size
with
focus on
product
differentiation
and
quality,
expansion
in
geographical
coverage
from
metros
to
smaller
cities,
shift
from
regional
developers
to
national
developers,
movement
of
construction
giants
up the
value
chain
and the
emergence
of
strong
real
estate
capital
market.
According
to a
study
done by
FICCI
and E&Y,
the
demand
for
office
space is
set to
expand
significantly
in the
next few
years.
The
demand
will
primarily
be
driven
by the
IT and
ITeS
industry,
which
according
to the
Ernst
and
Young
estimates
would
require
an
additional
office
space of
more
than 367
million
sq. ft.
up to
the year
2012-13.
The
domestic
real
estate
sector
may
emerge a
US$ 50
billion
industry
by 2010
and
prove
one of
the most
attractive
sectors
for
foreign
investments.
An
industry
research
by
financial
services
firm
India
Infoline
(IIL)
said the
real
estate
sector,
which
was
growing
at 33
per cent
CAGR
(compound
annual
growth
rate),
could be
a $50
billion
industry
in the
next
four
years,
if the
institutional
participation
supported
its
growth.
According
to
Investment
Commission
of
India,
investment
opportunity
of US $
500
billion
would
emerge
in India
in the
next 5
years in
major
economic
sectors,
of which
US $ 250
billion
investment
opportunities
exist in
the
infrastructure
sector
alone.
The
Infrastructure
sector
including
roads,
power,
railways,
aviation
require
an
enormous
amount
of
$320-350
billion
by 2012
to raise
rate of
investment
in key
areas at
par with
economic
growth
and 20
per cent
of which
will
have to
be
chipped
in by
the
private
sector.
Huge
private
sector
funding
is
required
since
public
investment
in the
area is
constrained
by
limitations
on the
government-borrowing
programme
imposed
by the
FRBM Act
and
demand
for
investment
by other
growing
sectors
of the
economy.
