According to a recent research, the Indian real estate market is worth $US 12million at present and will probably be worth $US 90million by 2015. From this point of view, it is a good time to invest in real estate in India. But with real estate prices sky rocketing in the top cities, is the same advice applicable to the common man?In case of real estates investments, returns may rise and fall from time to time. The best time to invest in real estate is during a downturn. In other words, a time when there is abundant supply and little demand. In India, for the present, this is the most common trend of judging the market and the real estate market had been good for a while because of the large Indian population.Other reasons for the flourishing state of the real estate market in India are:
- The Indian economy is flourishing. People working in the IT sectors and BPOs are amongst the highest earning segments of the society. The present generation is driven towards an ambitious future where the earning prospects will be much better. This workforce is relatively young and holds a majority in the property buying population. As the buying power of people grows, price of things in demand also increases.
- The Indian economy is growing. This is creating a demand for commercial space as well. Multi-national companies are entering the Indian market. Plus the new India has now money to be spent for shopping and entertainment and this is encouraging the outburst of shopping malls, multiplexes etc. which means demand for retail space as well.
- Real estate in India is good enough to compete on an international level. So real estate market in India is attracting NRIs and other foreign investors as well. Investors like Morgan Stanley, Merrill Lynch and GE Commercial Finance Real Estate has invested millions into Indian real estate.
- Right now in India, excess demand and a limited supply has made real estate prices spin out of control. The growth rate of real estate market prices in major cities in India especially in Mumbai, Delhi, Bangalore, Pune etc. is more than 50% annually. Though this is a promising trend, some are questioning the durability of it. Is the Indian real estate market’s bubble going to burst soon?
- In any market, prices tend to rise over a given period of time. And the rise in price is based on the rise in people’s income or inflation. But the price of real estate in India, especially in the major cities has risen too quickly to the surprise of the middle income groups. Usually at such a juncture the demand for rationality brings the prices back to what they should be. Such a situation has led to a correction in Delhi.
- But as of now there is no dearth in demand or investment. Especially in tier II and tier III cities, the demand is rising everyday. Even if the bubble is set to burst it might just affect cities like Delhi and Mumbai where property prices have spun out of control.
To sum up, this is a good time for investing in real estate but it depends on where you are investing. Investing carefully and with the requisite amount of background research is always advisable. That way you will not be caught unaware even in the case of an economic calamity.займ на карту без отказов круглосуточновзять кредит онлайн