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Indian realty sector to attract global investments: Study

The Indian real estate industry is poised to emerge as one of the most preferred destination for global investors, according to a study by industry body FICCI and Ernst & Young.

The study 'Indian Real Estate: Opportunities and Returns' pointed out that realty sector was poised to experience a landscape change in coming years, FICCI said in a statement.

Indian realty sector, which is estimated to be around 12 billion dollars, is growing at a rate of 30 per cent per annum and contributes about 14-15 per cent of the national GDP, the study revealed.

Outlining the key trends that would shape the real estate business in next 3-5 years, the study said that the developers would go for larger project size with more focus on product differentiation and quality.

Besides, the shift in real estate activities from metros to smaller cities, preference for national developers, change in ownership to leasing and emergence of strong real estate capital market were some other key trends highlighted by the study that would shape the realty business going forward.

The study pegged the additional demand for office space at more than 367 million sq ft up to 2012-13, driven by the growth in IT and ITES sectors.

However, the study cautioned that demand in this segment was highly dependent on the performance of the Indian IT and ITES sector, which faces severe competition from other emerging countries such as China and Poland.

New Delhi, Sept 17, Bureau Report, Zee News

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