Is it right time to invest in Indian Real Estate Market ??!!
It is the most asked question by every person who shares an interest for real estate investment. Almost dead stock market, fluctuation gold prices, down sliding fixed deposit and falling Rupee has no doubt attracted the NRIs as well as other investors to put their money in Indian property market. What other options they might have in current volatile market. The only thing that they need to care about is – The right place to enter at right price at right time, for example, one can step in with some renowned projects at the places where prices are not too high and chances are good enough to upsurge.
For NRIs and foreign investors, its definitely good time to invest in Indian real estate as, the rupee has depreciated considerably and thus the values /prices of properties have fallen in terms of dollar, i.e an increase in purchasing power of foreign investors & NRIs. Also, a wide range of real estate investment options with various ticket sizes are available with improved property features and service qualities, that can help NRIs to choose the right gate to step into Indian real estate market. They can also avail the opportunity of slump in sale of properties that can help them to get some good deals after a discussion with developers. No doubt that it’s like a double benefit for NRI investors as weaken rupee is not going to last forever, it will be short-term and thus will work like exponential growth factor because the property prices will appreciate too.
Offers like, 20:80 subvention scheme and buyback plans are also available in the market that offer a chance to resell the property to the developer for up to 18 to 25 per cent profit over a couple of years. The 20:80 plan help the end-users to buy their dream home, where buyers can buy property by paying 20% only and rest 80% can be financed by banks with no EMI till possession. This also minimizes the buyers’ risk factor. Current is an end user market and thus it’s a good step by developers.
In spite of all the above factors, NRIs are being conscious with the point that, there may be quite a long gestation period before the plant of investment start bearing fruits of returns.
Now buyers are also getting conscious and are asking to see the development before investing. They are also ready to forgo the huge discounts that are being offered for registration during property shows. So, we can say that buyers are careful enough to not to fall in trap; says a sales person.
According to real estate experts, the investors are suggested to be prudent as the residential property market has seen stagnancy for the past few months, which has resulted in slowing down the property price appreciation in the majority of leading urban areas. NRIs can take this scenario as an opportunity to invest in residential projects by renowned developers. No doubt the falling rupee against dollar will also be very handy. However, at the same time NRIs must also remain cautious about various dubious payment schemes, profile of developer and his ability to deliver project on time.
About the high prices, the experts make investors responsible. Right now, investors are playing a greater role than any time before in the real estate market which is keeping the prices high. No doubt, the Land costs, construction costs and finance costs all have gone up and naturally the total price has gone up. However, the current prices would not be sustainable if end-users were the only buyers. The prices are floating where they are because of investors.
In most of the fast developing residential real estate markets across the globe, the speculation based investment exists, and the same is with Indian real estate market too. However, the country has a strong end user pipeline guiding demand for new housing in the country which will eventually balance the Indian property market.
Alok Kumar Upadhayay …
Real Estate Professional