Real estate has always been an important investment category in India, at least since the last few decades if not longer. Let us take a look at few of the reasons why this may be the time for you to consider real esate as an investment in India - • According to some reports The country of India is among the top 20 countries globally that has the strongest momentum in its real estate index. Coming in second only to China, the country’s real estate industry is galloping ahead due to its fast growing urbanisation, changing consumer spending habits, changing demographic, greater average purchasing power and other favourable factors. • Not only that but even non resident Indians (NRIs) and other international private and corporate entities are landing on the country’s shores to invest in real estate and to set shop in the country’s booming industries. • One can only see how much the prices have shot up along the years, with some cities being prohibitively expensive for both. The economic upset of the past couple years have also made an impact in the sense that now real estate developers in India are beginning to adjust the prices a little this year to keep their businesses viable and keep the consumers more interested. • You will also find loads of special schemes, pre-launch services and attractive offers that are aimed to draw in the buyers, offering them multiple incentives and in turn making the sales momentum for real estate companies gain more speed. Loads of new projects especially in the residential sector are set to hit the market in 2013 in cities like Mumbai, Delhi, Bangalore etc. • It may definitely be a good time for private and institutional investors to dip their feet in the country’s real estate market or to completely immerse themselves in investment opportunities that seem to be cropping up all over the place. Take advantage of the current scenario where buyers are being encouraged to put in their capital by way of easier payment plans, rate discounts and more. • Also of course there is no way for a 100% prediction, but trend reports in the country’s real estate market have always shown an upward direction over the years. Real estate here has always been a viable investment option especially in the long term arena. Risks are always an inherent part of any form of investment. Do make sure you have the necessary funds and financial plans for something that requires this amount of commitment regarding both time and capital. Commercial real estate In 2012, major cities of Mumbai, NCR-Delhi, Bangalore and Chennai absorped 72.5% of total commercial space in the country. For 2013 also almost 75% commercial space absorption will be concentrated in these cities The exchange rate benefits due to falling value of Indian currency is set to boost investment from the Non Resident Indians (NRIs). The biggest problem concerning non resident market has been slow growth of job market, crumpled by a struggling economy in 2012. Office space supply in India has been low in the current year due to lack of job opportunities Retail real estate The organised retail project completion rate will witness more than 100% rise in year-on-year basis in 2013. 9.5 million square feet of additional mall space will be added in 2013. Of the total mall space absorption in the country, Mumbai, Delhi-NCR, Chennai and Bangalore will have the major share, around 70%. Other cities like Hyderabad, Kolkata and Pune will absorb the rest 30%. Government’s approval of Foreign Direct Investment (FDI) into multi brand retail is set to be the most influencing factor on the retail scenario of the country. As per recent reports, India has replaced USA as the second most preferred FDI destination in the world. The question arises what kept the real estate such a prosperous option even during a time when every other investment option seemed such a huge risk. Studies have revealed the transparency in the way the real estate sector works and the strong legal rules guiding almost every aspect governing investments in this sector has made it a great option for the investors. With India becoming one of the major targets for the Foreign Direct Investors, the need for new property is on the rise. People need more residential complexes, places to build shopping malls, offices, industries, and even agricultural lands. And they need these in proper locations which will benefit the business. Thus the demand for real estate properties at some of the key locations within the country skyrocketed within a few years. India today is a fast growing economy and almost 50% of the population comprises of the young, dynamic generation. As they establish themselves in the society, their requirements also increase. From tourism department to hospitality, all are grabbing the opportunity. The high income younger generation today is their primary target. Thus, demand for real estate is also on the rise. Space is required for hotels, restaurants, leisure activity zones, etc. While the rise can be seen in all the parts of India, but the major towns and metro cities are most in demand. And it can be safely assumed that an investment at property in India is one of the safest options which can yield a high return for certain. With the continuing rise of the price of properties available in India it is one of the smartest choices when the question of investment decision arises. • Residential real estate investments are properties such as houses, apartment buildings, townhouses, and vacation houses where a person or family pays you to live in the property. The length of their stay is based upon the rental agreement, or lease agreement. • Commercial real estate investments consist mostly of office buildings. If you were to take some of your savings and construct a small building with individual offices, you could lease them out to companies and small business owners, who would pay you rent to use the property. • Industrial real estate investments consist of storage units, car washes and other special purpose real estate that generates sales from customers who temporarily use the facility. Industrial real estate investments often have significant fee and service revenue streams, such as adding coin-operated vacuum cleaners at a car wash, to increase the return on investment for the owner. Maintenance to know more go through my page facebook/indraprasthvihar Regards, sumit gupta contact no. 8094783330
Posted on: Fri, 04 Jul 2014 10:48:08 +0000
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