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India 2.0: What will it take for India’s real estate market to succeed?
Over the course of the past decade, the Indian economy has been one of the best performing in the world. Per capita income in India has grown by 7.9 percent annually during that time, from US$2,840 in 2005 to US$5,650 in 2014 (on a purchasing-power-parity basis). This has increased the investible surplus of the growing Indian population, generating housing demand.
With improving socio-economic fundamentals, the real estate sector has grown over the same period and experienced a paradigm shift from a largely-unorganised and opaque sector to a much more organised and transparent one. India has seen a cumulative absorption of about 26.7 million square metres in the past 10 years.
A boom in the information technology and IT enabled services sectors has fuelled demand for commercial space, establishing new sub-cities such as Gurgaon and Noida and reviving existing cities such as Bangalore and Hyderabad. This has led to job creation on a large scale, fuelling demand for home