The Indian real estate industry is poised to emerge as one of the most preferred investment destinations for global realty and investment firms in the coming three to five years, according to a survey done by the Federation of Indian Chambers of Commerce and Industry and Ernst & Young. According to the study, growth will be in the residential, commercial office, retail and entertainment segments. However, the focus for growth will be on product differentiation and quality, geographic de-concentration from metros to smaller cities, shift from regional developers to national developers, consolidation of large Indian business groups and their emergence as market leaders, shift from land transaction to development transaction, change in ownership to leasing, correction in supply format from investor to consumer driven, movement of construction giants up the value chain and the emergence of strong real estate capital market. Further, India's improving image, as a regional corporate base for Asian markets and strong growth in emerging sectors such as financial services, pharmaceuticals, telecommunications, and biotechnology will also boost demand and broaden the occupier base. Several upcoming special economic zones are also expected to provide the next generation impetus to the commercial office space development.

The Hindu Business Line New Delhi Edition September19