CONSTRUCTION AND REAL ESTATE Real estate Industry covers land along with those improvements to it such as commercial and residential structures, roadways and ports that are all fixed in location. The Term Construction is the process of building new infrastructure on real estate. Both are often treated as part of the same Industry. Any large scale real estate development is a feat of multitasking by a wide host of professionals, including financial analysts, legal experts, project managers, construction managers, design engineers and project architects, amongst others.

According to a report ‘Emerging trends in Real Estate in Asia Pacific 2011', released by PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI), India is the most viable investment destination in real estate. The report, which provides an outlook on Asia-Pacific real estate investment and development trends, points out that India, in particular Mumbai and Delhi, are good real estate investment options for 2011. Residential properties maintain their growth momentum and hence are viewed as more promising than other sectors. ULI is a global non-profit education and research institute.

Banks have experienced strong demand for loans from non-banking finance companies (NBFCs) and from the real estate sector during the year till February, shows the latest data released by the Reserve Bank of India. “Credit growth to NBFCs at 46.4 per cent on a year-on-year basis in February was significantly higher than the growth of 19.8 per cent during the corresponding period of the previous year,” RBI said. During the first 11 months of the financial year, loans to NBFCs increased by 39.9 per cent as compared with 9.7 per cent during the corresponding period last year.

Bank credit to commercial real estate (CRE) grew by 17.8 per cent for the year till February, as compared with 0.9 per cent growth during the same period last year. On a financial year basis, credit to CRE grew 17.1 per cent as against a decline of 0.9 per cent during the corresponding previous period. Overall credit growth till February was 22.8 per cent in 2010-11, compared to 15.9 per cent of the previous year. This was higher than RBI’s projection of 20 per cent.