Construction industry to grow 26% annually till 2014

The real estate industry in India, which was in doldrums due to the global financial crisis last year, is showing signs of recovery and is expected to clock an annual average growth rate of approximately 26 per cent till 2014. Affordable housing, which controls more than 50 per cent of residential sales, will continue to be the main focus of the real estate companies. The Union Government is working out easier norms for overseas investors to invest in smaller real estate projects. In order to reduce the risk of high debt and interest expenses, real estate companies are going for other options such as qualified institutional payments. Also, private equity investments are now being done at project levels rather than at company levels.