real estate

Investing in Indian Real Estate

Real estate in India has been among the better and more preferred options of investment for some time now. The rapid growth and development have resulted in a constant rise in India property prices, and the same holds promise for the coming years as well. As a result more are and more people are choosing this avenue of investment as safe and more rewarding. A recent study by ASSOCHAM revealed that 65% of working individuals in India opt for real estate investment as a mode of long term investment.

The Indian real estate has seen a marked development over the last decade and a half. While infrastructural development such as the Metro Rail, new Expressways and new service sectors have added to this rush for properties in India, new developments are coming up regularly to meet these demands. Apartment and flat enclaves, row houses are coming up every second day from leading developers across the country like Unitech, DLF, Lodha, Oberoi, Tata, Hiranandani and others, making the India real estate market richer with every passing day.

While Delhi NCR has emerged as one of the top three investment destinations for properties in India, both in the residential and commercial segments, prices of properties in Mumbai have escalated to become the maximum in the India real estate market today, owing to its recognition as an IT and ITeS hub. Huge investments in the commercial sector are also underway and demand for office space in Mumbai is touching the roof with rental values in the city also on a high in comparison to other metros. Although Kolkata has lagged behind other metros in the country in recent years, the Kolkata real estate market is considered far more stable than anywhere else in the country for anyone looking to invest in India real estate. And with the recent boom in the IT sector and subsequently other service sectors, there has been a marked lift in the demand for properties in Kolkata. The story is the same in other major cities like Bangalore, Pune, Hyderabad, Chennai and even in the smaller centers across India, contributing to a constant growth in the India real estate market.

Considering the recent dearth in the quality of properties in India, there are risks in property investment, which can, however, be negated to a maximum extent with some homework before investing. For residential properties in India, a ready-to-move-in unit or a unit that will be delivered within a year is the ideal option for investing. The same applies for commercial properties as well where the investment is always substantial and so are the risks. Checking on the developer and his previous records in terms of development quality and timely delivery is essential. Also checking if the developer has the necessary approvals for the current project is important. Having said that, despite of all the risks involved, properties in India still remains the most lucrative form of investment for any investor.