Despite an economic downturn,
investment in India property continues to be an advantageous proposition in the
year 2012 and years to come. At present the Return on Investment (ROI) is
compounded annually at 15% for tenure of 15 years. It seems unlikely that such
massive returns can be expected from any other asset, besides land. In the
first quarter of 2012 the Indian real estate sector seems to
be a witness to a hike in the number buyers of residential and commercial
property in India.
According to a research survey,
there has been a voluminous increase in the number of home buyers across India,
especially in cities like Delhi, NOIDA, Gurgaon and Mumbai. India Property
particularly due to growth of realty market of Mumbai, Pune, Delhi and Gurgaon
foreign business tycoons such as Donald Trump Junior have been tempted to invest
in properties in India.
In 2012, interest rates on home
loans started to soften thereby enhancing the capacity of potential investors
to buy property in India. This will be considered to be a contributing factor
to result in further appreciation.
Most often, it is advisable to
invest in a property project associated with a reputed builder such as DLF,
Vipul Group, IREO Group etc than an individual residential plot or a relatively
unknown developer. Some developers, for instance, BPTP Group offered inaugural
discounts at the launch of projects such as BPTP Terra. As its under the
protection of the developer, cases of trespassing and unlawful acquisition of
land are avoided. Moreover, many private developers propose many
infrastructural advantages and provide lifestyle choices in what seems to be
self contained functional units. Given the advantages offered by such projects,
the prices are likely to increase.
Once a buyer has paid some
significant amount of money to the developer and a considerable time has
passed, the property can then be sold by an investor. Usually, towards the
completion of a project, the prices of property in India are likely to
increase. In some cases, a property is considered to have such good prospects,
that it might get completely sold out. It is then advisable to buy such units
at resale prices. Although a general belief is that at resale prices, the rates
are comparatively less, on certain occasions, such belief is unfounded. This is
remarkably true both for residential property in India as well as commercial
property in India.
As the real estate India price
of some projects continues to soar high such as DLF The Aralias, DLF The
Magnolias etc in Gurgaon, its anticipated that many investors decide it's time
to sell property.
