There is no doubt that the real estate sector of the country is on a growth path. There has been some pretty fast development in the commercial as well as residential property spheres, especially since the last decade or so. This growth is apparent in major cities and metropolitans such as Mumbai and Delhi, while the percentage may be on the lower side in smaller towns. While more credit goes to the commercial properties developers in India for the inflow of foreign capital into the country, these are the same developers that are responsible for some of the best residential complexes seen today. It is safe to assume that most leading developers of the country are now concentrating on not just constructing new complexes, but supplying world class structures that are equipped with every modern day amenity to the masses.
In view of the fact that in the past ten years there have been more than a thousand prominent international companies that have bought commercial property in some major city of the country, it comes as no surprise that the commercial property prices in such cities are seeing an ascend. When we talk of metropolitans like Mumbai and Delhi, it is safe to say that the big players of the real estate sector are busy creating state of the art commercial complexes that are targeted towards multinationals, companies from the IT sector, internationals banks, Corporate houses, big brands and the like. These are constructions that are designed with specific fields or companies in mind. Smart developers go out of their way to recruit architects and interior designers from all over the world to give the building an exclusive look and feel.
On the other hand, when we talk about commercial properties in smaller towns or B grade cities in India, the market is noticing a growth due to the retail boom. The commercial complexes in such cities are in demand for retail shops, showrooms, shopping malls, small business offices, etc. The target market and segment is the middle class and upper middle class of investors. While commercial property can include industrial property, office buildings, hotels, shopping centers, warehouses, showrooms, and so on, most well-known developers prefer investing in complexes that have a larger audience and high demand.
Commercial properties developers in India are also benefiting from some steps the Government has taken to help the sector grow at a faster rate. These include allowing 100 per cent FDI in townships, housing, built-up infrastructure and construction development projects through the automatic route, and allowing 100 per cent FDI under the automatic route in development of Special Economic Zones (SEZ), subject to the provisions of Special Economic Zones Act 2005 and the SEZ Policy of the Department of Commerce.
