Property investment in India is very popular at present. India’s rich culture and diverse history makes it a truly remarkable place to visit. The earliest known settlements are over 9,000 years old, since this then India has been home to a number of civilisations and races. It was not until the 16^th Century though that the country fully became involved with European powers. The fractious nature of the kingdoms was taken advantage of by European traders until the 1850’s when much of the country was effectively under the rule of the East India Trading Company. Following a failed rebellion, the country came under the rule of the British Government and remained so until 1947, when it gained full independence.

India is on the cusp of turning from an emerging economy into a fully fledged global powerhouse. For the past decade, India has been a major destination of business process and IT outsourcing. However, whilst these industries have blossomed, this is not the rule across the board. Instead the country lacks investment in infrastructure and agriculture, of note. But this is all about to change. Ernst and Young expect over $100 billion of private investment infrastructure. Further more, it is anticipated that the government’s investment in roads, rails, water, energy and ports will rise from 5% of GDP to 9% by 2012. But why is this important, well it will allow India to continue to close the gap on China, and offer the support that the economy needs to continue to flourish.

Key Facts

It is expected that this year will see India attract $13.5 billion of private equity, double the figure of 2006, and by 2010, will be standing at $20 billion annually. Furthermore, Blackstone has completed its fifth deal in the country in 2 years.

But how is the real estate part of India doing? And where is the evidence that all this growth makes it worth while to invest in? Merrill Lynch predicts that the value of the Indian realty sector will grow from $12 Billion in 2005 to £90 Billion by 2015.

Further more, "India is the most exciting real estate market in Asia," says Michael Smith, head of Asian real estate investment banking at Goldman Sachs. "It's one of the last major countries in Asia with an improving market."