In total Indian GDP growth, the portion of foreign investment in real estate market is only 1.1 percent only. Where as in China it is 3.2 percent the reason behind this much variations are many let us analyze these in detail.
In China the total land holdings and its rights are with the Chinese government and hence there is no hurdles for the foreign investors to invest. But in India most of the land holdings and their rights are with the Public. The land owners have the sole desecration in fixing the land price. They cannot reduce the land price to the minimum but they can raise the land price according to their wish. weather right or wrong they raises the land value and makes huge profits. The mediators also plays to some extent to get more commissions.
In India next to agriculture. The real estate is giving more employment opportunity and lot of employment opportunities are available in this field. Generally if a particular sector is of in boom the other industries related to that sector also will get more benefits they also will be in growth mode.
Hence it is the right time for foreign investors to invest in this sectors. For domestic small and medium investors to invest in real estate and construction related shares. Now most of the mutual funds also investing in this sectors only. India's leading bank SBI invests12.7 percentof its investment in real estates only. So think and act wisely.