Real
Estate |
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| Innovative Real Estate
Investment Structure: |
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Invest at the launch
of a Real Estate Project » Get security of property
as collateral » Earn high interest income on the
principalwhile the project is being completed
» Reap the benefits of real estate appreciation
along with the interest income at the completion of
the project . |
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Invest to book a flat/apartment
in the upcoming project launched by reputed construction
companies and earn superior annual interest on the principal
along with the safety of the collateral. This way, you
get to invest in real estate as well as earn interest
income on the principal. At the completion of the project,
you would have earned interest income on the principal
invested as well as reaped benefits of real estate appreciation.
We expect a 25%-30% annualized return through such structure.
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The Indian real estate
sector involves the development of commercial offices,
industrial facilities, hotels, restaurants, cinemas,
residential housing, retail outlets and the purchase
and sale of land and land development rights. |
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The main factors
that are driving demand in the residential segment are
described in more detail below: |
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Large segment of the population economically active:
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India's growing population
in the earning age bracket is recognized as a key driver
of growth in housing demand. The size of India's main
working age group, 25 to 44 year olds, has increased
over the last two decades. According to CRIS INFAC estimates,
as of 2005, approximately 28.2% of India's population
was in this age bracket. This figure is expected to
rise to approximately 30.6% by 2025, an increase of
approximately 5.5 million people each year, which could
translate into a further 2.75 million new households
per year. Also, the average age of a home purchaser
has fallen from 42 to 31 years old (Source: CRIS INFAC
Retail Finance, July 2006). |
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Shift in consumer preferences from renting to owning
houses: |
Due to the changing
demographic profile in India, there has been a steady
decline in the portion of households living in rented
premises. To a certain extent, this may be attributed
to rising income levels. However, with fewer properties
available to rent today and an increase in the rents
being charged to tenants, consumers have increasingly
been investing in property. Factors such as the increase
in the standard of living of consumers and the greater
availability of financing for consumers are expected
to fuel a further decline in the number of households
renting premises (CRIS INFAC Annual Review on Housing
Industry, January 2006). |
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Increasing Urbanization: |
India has witnessed
a trend of increased urbanization as people migrate
from rural to urban areas seeking employment opportunities. |
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Shrinking Household Size: |
India's traditional
joint family (or multi-occupant) residences are gradually
being replaced by individual or smaller nuclear family
residences. For example, according to CRIS INFAC, the
average size of Indian households decreased from approximately
.52 persons in 1991 to approximately 5.30 persons in
2001. This trend is expected to continue as factors
such as increasing urbanization and migration for employment
opportunities cause a decrease in the size of the average
Indian household to an estimated 5.08 persons by 2011.
Given India's increasing population, such contraction
in the size of the average household is expected to
increase demand for housing (Source: CRIS INFAC Annual
Review on Housing Industry, January 2006) |
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