India has witnessed an emerging middle class in recent years due to the country's economic boom.

The Indian economy is growing at a rate of 8% per year.

Property laws are underway to improve the market.

India is attracting international property players.

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A 'real' giant

International and local operators are both recognising this potential, including UAE-based Emaar which in December 2005 committed US$4bn for projects in Delhi, Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra.

Its investments span the residential, commercial and retail sectors in the country.
Real estate from retail to residential and commercial is fuelled by the country's population growth. According to the Asian Development Bank, India needs 10 million housing units by the end of 2030.

By 2012 the government aims to provide housing for all of its citizens requiring an investment close to US$800bn.

Again the middle class are also having a positive effect on the residential sector as well as an increase in disposable incomes and changing attitudes towards ownership (the average homeowner is now 32 years old compared to 45 a decade ago).

In light of this, house prices are rising. According to a Cushman & Wakefield report the average price of a residential apartment in South Mumbai has more than doubled in the last two years to US$537 per sq ft.

Office prices in the Southern business district have also doubled to a 10-year high. An additional 367 million sq ft of office space will be required between now and 2012-13 to meet demand.

With a growing retail sector there is also huge potential for commercial growth in the form of shopping malls. Organised retail currently accounts for just 2-3% of the retail market in India but this figure is expected to rise to 10-12% by 2010.

By the end of 2008, 66 million sq ft of retail space will be added in the eight largest cities in the country and 13 million sq ft in the next seven largest cities.

"The demand in retail [space] is being driven locally. The middle class population is fuelling the demand for an urbanised retail sector which now accounts for 2-3% of the overall retailing so there is a huge demand for organised retail to fill the gap in the market," says Grover.

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