Real estate is a very important economic factor to any country’s growth. A country economically depends heavily on the real estate business. Agriculture in terms of employment generation contributes heavily towards the gross domestic product (GDP). Five percent of the country’s GDP is contributed from the housing area. This number is expected it increase in the coming years to six percent. Jones Lang LaSalle proclaims that the faster the growth in countries likes Russia, Brazil, India and China the more the chances of the nation recovering at a faster rate than UK or USA. India’s property sector is improving every minute and economic growth is taking place in this sector. The growth of the organized Retail industry might just increase and with it the real estate costs are bound to go up. It has been estimated that the organized retail industry might require an additional 220 million sq ft by 2010. The growth is also not subjected to only highly develop urban areas but also rural areas. The growth in real estate is expected to increase all over the country.

It can be noted that almost 80% of India’s real estate come from its residential areas. Residential areas take up the most amount of place in any country. Urban areas are also filled with offices, shopping malls, hotels and hospitals. However the rural areas have most of their land under cultivation, there it cannot be termed under the real estate. Along with a huge demand for space, the construction business is also on a rise now. The number of shopping malls is increasing everyday and each of these malls has a huge place attached with it. This extra space can be considered a waste of precious land. However it can be noted that like America or UK, a number of legal complexities are attached with the entire process of real estate.

With the rise of terrorism and corruption, real estate agents have started becoming much more careful. A buyer has to go through a number of documents. It is pretty difficult for a non-Indian to purchase land in India. However it has been noted that with the growth in the real estate sector, a number of foreign banks have taken active interest in the real estate business in India. Some of them are providing easy loans with simple return schemes. Some of the banks are tying up with construction companies to form alliance and financially help the company grow. The Government has also started a number of progressive reforms to bring together the thriving real estate business. The RBI is offering confessional loans and easy schemes to purchase land. It can therefore be interred by saying that the real estate industry is growing in leaps and bounds with a little help from both foreign and Indian banks.