Real estate is one of the fastest growing sectors of the Indian economy and contributes about 5 per cent to India's gross domestic product (GDP).
The country's economic growth is driving the demand for real estate in India. Demand for residential space is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014 - Tier 1 metropolitan cities are expected to account for about 40 per cent of this. The top three cities - Mumbai, the NCR and Bengaluru account for 46 per cent of total office space demand in India.
Indian real estate sector is the fourth largest sector in terms of foreign direct investment (FDI) in the country. During April 2012-January 2013, the sector accounted for 8.8 per cent of total FDI inflows into India. FDI in the sector is estimated to grow to US$ 25 billion in the next 10 years.
Growing requirements of space from sectors such as education and healthcare provide opportunities in the real estate sector. Growth in the number of tourists has resulted in demand for service apartments.