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India Property Investment For Sale

 

"Those looking for a pure investment buy will probably be tempted by cities such as Mumbai, Bangalore and Jaipur."

 

India is one of the world’s fastest growing economies, ranking ninth largest in terms of nominal GDP with a huge population of 1.2 billion people.  One of the all-powerful BRIC nations, India is home to the most populated city in the world, the most prolific film industry and one of the most favoured cuisines.

The growth of the Indian economy has been quite staggering during the first decade of the millennium and has only slowed a little due to the world recession.  The economy has been further helped by the Indian government opening the economy to more investment from abroad. 

With a population that is growing at an unprecedented rate (set to overtake China by 2030) millions of new homes will need to be built and for those who can buy here it looks like a good investment.

And there lies the catch – only those with strong personal links to India can buy in India - ie a non-resident Indian or persons of Indian origin. For those who are eligible there are a number of key centres in which to invest.

Mumbai – The commercial and financial capital of India offers a fantastic public transport network so no area is out of reach and property generally is in high demand although expensive.

Bangalore – The technology hub of India where demand for apartments is high.

Jaipur – The ‘pink city’ popular with tourists due to its stunning lakes, forts and palaces, it is also a centre for substantial IT and industrial development.

Rudrapur – Created as a Special Economic Zone by the government, Rudrapur is home to 450 new factories and the population is growing rapidly.

Goa and Kerala – Both popular tourist destinations in the south.

Country Guide

Geography

India is located in Southern Asia and borders Pakistan to the west, China, Nepal and Bhutan to the north-east, and Bangladesh and Myanmar to the east. With a coastline of over 7000km, India is bounded by the Arabian Sea to the west, the Bay of Bengal to the east and the Indian Ocean to the south. With a vast total area of 3,287,590 square kilometres, India's terrain is hugely varied.

Southern India is composed predominantly of a peninsular of upland plain, known as the Deccan Plateau, which is flanked by two coastal ranges; the Western Ghats and the Eastern Ghats. The east along the Ganges largely consists of flat to rolling plains, while in the west lies miles of desert. India's northern and north-eastern states lie partially in the Himalayan Mountains. The country has many great rivers, including the Ganges, the Brahmaputra, the Yamuna, the Godavari and the Kaveri.

Government

India is a federal republic that comprises 28 states and 7 union territories.  It gained independance from the UK on 15 August 1947 and has a common law system based on English Law.

Language

English has the status of a subsidiary official language, but is the most important language for national, political, and commercial communication. Hindi is the official national language and primary tongue of 30% of the people. There are 14 other official languages: Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, and Sanskrit. However, the number of dialects in India is as high as 1,652.

Standard of Living

The standard of living in India is generally modest, but is improving fast.  Although many live below the povertyline at the other extreme India now has numerous billionnaires.

Living standards in India, particularly as far as health in concerned range hugely from the most basic healthcare in rural areas, to excellent medical facilities in the commercial cities.

As the Indian middle class becomes used to a higher standard of living comparable with the west, conditions should improve. India's middle class is now growing by 15-20 million people every year and by 2025 half of the population will be categorised as middle class.

 

Country Economy

India is one of the world’s fastest growing economies and as one of the all-powerful BRIC nations the Indian economy has grown at an amazingly fast rate since the turn of the century.  Nothing seems to be getting in the way of the growth of this vast nation and now India boasts one of the most highly educated populations and a world class leader in technology.

The Indian economy is growing at a rate, double that of the West during the Industrial Revolution. 

India's economy is diverse, with about three-fifths of the workforce still in agriculture. As time moves on though, services and software industries are becoming major components of the country's economic growth. India still remains a low-income economy as classified by the World Bank, largely as a result of its huge and growing population.

Key industries

Engineering goods, textiles, gems and petroleum products. The US, UAE and China are India's main export partners. 

Hotspots

Those looking for a pure investment buy will probably be tempted by cities such as Mumbai, Delhi, Bangalore and Chennai which have all undergone radical growth in the last few years. Indeed, the country is urbanizing at a rapid rate of 2.5% a year. 

Mumbai

Mumbai is generally regarded as expensive, especially south of the city. Identified as the commercial and financial capital of India and with a fantastic public transport network, no area is out of reach and property is in high demand. Apartment prices in South Mumbai are the equivalent of those in many of the world's leading cities. 

Buyers would do best to invest in other rapidly developing cities such as Bangalore in India's 'Silicon Valley' (Karnataka) or Jaipur (Rajastan).

Bangalore

Bangalore is firmly established as a technology hub and its economy is growing rapidly. Here, total demand for apartments is estimated at 24,000 units each year.

Jaipur

Jaipur forms part of the 'Golden Triangle' of Delhi-Agra-Jaipur. Popular with tourists, it is universally famous as the 'Pink City' with stunning lakes, forts and palaces. It is also the site for substantial IT and industrial development. To keep pace with the business development there are a growing number of residential complexes being created.

Other fast moving cities include Chennai (Tamil Nadu), Hyderabad (Andrhra Pradesh) and Pune (Maharastra) which are proving to be highly attractive business locations, thus attracting residential demand. IT and retail are key drivers of the real estate sector in Pune and its transformation into a vibrant corporate city with close proximity to Mumbai has made it a hot destination for the real estate investor. 

Rudrapur

Rudrapur is expected to see huge amounts of growth in the near future after the government designated it a Special Economic Zone and offered tax incentives to encourage companies into the area. With around 450 factories being built and a work force of around 300,000, those living locally may choose to move out of family homes as their wages increase.

Goa & Kerala

For buyers looking to pick up a second home for holiday use or for the holiday market, the best letting opportunities are in Goa and Kerala in southern India. With 100km of stunning beaches, tourist arrivals are growing year on year making Goa a hot destination for investors. The Goan government is cracking down on rogue agents and sales to non-Indians have to be reported to the government to ensure they are legally conducted.  Often nicknamed 'India for Beginners' it is a delightful blend of east and west and is also rated as one of India's best states to live in and one of the safest Indian regions. Kerala, also known as the 'Queen of the Arabian sea', is a collection of islands and narrow peninsulas with a warm tropical climate. The area has become increasingly popular with tourists over the past few years and has a sustainable tourism industry, almost year-round. 

In both Goa and Kerala, an apartment in a gated compound can be a good buy. Remember that a sub-tropical climate can have a harsh effect on buildings so buying into a serviced apartment block means less can go wrong in your absence. 

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