The real estate market covering India properties is on a high growth curve and probably the next big opportunity in India. With low interest rates, excess money supply, stock market gains, policy changes and revived demand (since 2004) real estate markets across the commercial, residential and retail sectors are showing an upward trend. A booming economy with 8.1 percent growth in GDP and the government liberalizing policies in the housing and infrastructure (to create new township) sector have increased purchasing power of its people and created demand for real estate holdings.

Compared to investment in the bank deposits or bonds, the returns from rental incomes, especially in metros which stand close to 11%, is higher by 5% and is one of the highest in the world. Due to the heavy demand and upward prices on real estate values, real estate investment and speculative interest in real estate is growing.

Investment in the residential sector is on an upsurge (with increased employment opportunities and better pay packages) assuring middle income urbanites to acquire a house property with just 5 years salary coupled with easy housing finance. Today investors can easily cash on potential capital gains by about 25-40% p.a to improve their overall returns.

The capital appreciation in the retail market too is growing and close to 20-35% p.a. due to increasing demand from retailers, higher disposable incomes and shortage of quality space. After India eased restrictions on property investment in India market with adequate safeguards that provides comfort, long-term stability and security allowing foreign companies to establish subsidiaries or joint ventures to develop property, at least half a dozen foreign builders have launched construction projects in IT / ITES and BPO sector across major metros in India thus raising the capital values of commercial office spaces by 40% in just one year. Global investors investing in real estate India can certainly look for a 25% ROI soon.

Analysts also predict a similar demand for housing, demand for retail space, followed by health care and the hospitality industry. The country has immense scope of building infrastructure and increasing returns on investment by 50%. As the saying goes, make the most while the sun is shining, we say the sun will continue to shine as long you own the ground beneath your feet, somewhere in India.