New Delhi, Oct 1: ASSOCHAM today expressed bullishness on the growth prospects of the real estate sector, projecting it to grow by 30 per cent by 2015 touching 90 billion dollars mark.
The growing demand for land has made the real estate sector most lucrative, providing returns ranging between 20 to 30 per cent, ASSOCHAM said.
''Repealing the Urban Land (Ceiling&Regulation) Act 1976, rescind of the Rent Control Act and increasing floor-area-ratio would give further boost to the sector. While 10 billion dollars is likely to flow the sector by 2008-end, by 2010, it might reach 15 billion dollars every year,'' Assocham President Venugopal N Dhoot said.
The chamber said the IT and ITES, banking and financial services have created a huge demand for office space. IT and ITES alone is expected to require 150 million sq feet across urban area by 2010.
Analysts pegged the total demand for commercial office real estate in Bangalore, Chennai, Delhi-NCR, Mumbai, Pune, Hyderabad and Kolkata alone to be over 25 million sq ft in 2006.
Assocham also added that organised retail in India has a potential to propel the real estate market, with a demand for at least 220 million square feet of retail space by 2010.
The government is spending heavily on infrastructure development, covering express highways, airports and hi-tech construction, involving power plants and mega projects.
The infrastructure sector in the country is estimated to be at over 400 billion dollars. The Jawaharlal Nehru Urban Renewal Mission, Bharat Nirman and the National Highways Development Programmes are few of the prominent expenditure plans of the Government that would give boost to the real estate sector, the body claimed.
Besides, the growing business travel by the global business community in the country has provided a boost to the hospitality sector.
Apart from expansion of the current hotels, several new hotels are expected to get erected. The sector has caught attention of many global players, including private equity funds.
The joint ventures between Hilton-DLF, Emaar-MGF-Accor and Nirmal Lifestyle-Accor are likely to develop around 175 hotels across India in next five years, Assocham said.
Special Economic Zones (SEZs) coming up across the country are the new avenues of land development. The total land requirement of about 33,808 hectares for the 234 formally approved SEZs clearly indicates the amount of land that would be available for development, it added further.
The total number of SEZs notified under the SEZ Act and Rules was 132 as on July 23, 2007.