Indian real estate is all set for further growth feels, Kalpana Jain, a senior director of Deloitte Haskins & Sells in New Delhi, a member firm of Deloitte Touche Tohmatsu of New York.

Seeing the rapid socio-economic changes taking place in India, it is expected that there will be growth in residential, retail and office sectors due to the country’s growing population as people will switch to nuclear families from extended families.

According to a study done by the National Council for Applied Economic Research, the total number of households in India will increase to 221.9 million in 2010, from 204.3 million units in 2006.

However, Kalpana Jain, also believes that Indian IT boom has really pushed the Indian real estate. Elaborating on this, she said, as the IT sector is developing and reaching smaller cities due to space crunches, this has helped many property developers to come up with housing units in different cities.

She also added that, despite Indian real estate industry, awaiting regulatory clearance, Indian and overseas players have raised around $1 billion worth of real estate funds.

However, the Securities and Exchange Board of India (SEBI) is nearing regulatory clearance for something real estate mutual fund that was proposed in June last year.

Once the necessary clearance is granted, real estate funds will fall under India’s mutual fund regulation and be listed on the stock exchanges. Then, it will be easy for foreigners to invest directly in properties, mortgage-backed securities, equities and bonds of real estate companies.

Various Indian property developers like Gayatri Projects Ltd., Tantia Constructions Ltd. and Parsvanath Developers Ltd. have already received positive response to their initial public offerings (IPOs).

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