Real Estate Today


Currently Real Estate companies and Builders are affected very much due to high interest rates, high inflation, increased input cost, unavailability of funds from banks, due to RBI prioritization. Lower commodity prices, lower home loan rates should help the Real estate sector to get the life line back.
For the investor the key is to invest before there is a turnaround in the industry and not after seeing one. If you are planning any real estate purchase, do it without delay. This is nice time to negotiate and get a good deal from builders and sellers. 
It may be wise to invest in a finished product than the project just announced. There is not a big price difference in last 2 years; considering the cost of money, you might come out good compared to someone who invested 2-3 years back and still waiting for that apartment completion. There is a risk of project not completing on time, when you are investing with new projects. 
Please check Indianrealestateboard.com. You will find complaints about all most all major projects.
Many investors make mistake thinking they are buying a project cheaper at the launch. This is wrong. A project at launch 3 years back might cost you Rs.2500 and today Rs. 2800. It is steel to buy at Rs.2800 today compared to someone who booked it at Rs.2500 and paid all money still waiting for the completion. You are paying Rs.100/year appreciation on Rs.2500 project – just 4%/year. 
We just completed a group purchase of about 20 plots in Coimbatore. And we are working in next deal in Sriperumbudur, plots are priced below 300/sqft. Check plot prices in your favorite city and pick few. For investments, land is better investment than apartments.

2 Responses

  1. Venkysdiary says:

    Dear RRK,

    Well written..better to buy ready to occupy flats than buying it during the construction phase. But there are few things like choice of flats in respect of direction, diemension etc, which for majority of buyers is an important consideration would be limiting factors. So the tendency to book and wait eternally for “handing over” continues.

    Coming back to buying plots, yes, the history tells us land has appreciated better but it is anybody’s guess if it would continue so in the future. I see an increasing need for community living, amenities, security which is driving people towards flats, which is not possible in case of individual houses. Just my thoughts on this.

  2. In previous article regarding market, you mentioned a grim image of world economies. based on that do you still believe real estate market will do good!!!

    Scenario:
    Euro-zone gets in severe trouble, eventually bringing down world economies and world-wide recession. What do you think will happen to real estate bubble in India!!!

    Just wondering, why is it that you believe buying now is a better choice?

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