Real Estate is a profitable investing option and good income-generating tool. According to a report by the Chamber of Indian Industries, investing in real estate is a globally popular as it an income generating asset. Investing in real estate means that you will get regular returns. This global phenomenon is also becoming popular in India realty sector.
In the 1980s, the real estate India was looked as a sector to invest money after doing the traditional investing. The prices of property were constantly escalating, as there was limited supply than the demand. Property developers were busy with construction of residential and commercial projects. These projects were complete sold out even before the construction started. In addition, during the construction, the property changed several owners, which further escalated the price. On completion of the property, the prices of these property skyrocketed. This was the real estate India scenario in the 1980s.
This picture changed in 1990s, as there was an excess supply of housing properties and the market crashed. The higher the prices of the realty sector went, the steeper was the fall, and this was common in the urban centers and metros of India. Property market of Mumbai and Delhi especially witnessed the increased supply of housing projects. The demand was steady as opposed to the property supply and thus prices remained at realistic levels. This was the scenario in the early and mid years of 90s in India. The property prices stabilized at the end of the decade and rates became more reasonable. In the same phase, the housing finance companies expanded and developed. Housing loans become easily available, which indirectly pumped the realty demand. Besides, easy availability of housing loans, the tax benefits from these loans encouraged buying and investing in the real estate India. In addition, the rising income of urban India joined, falling interest rates and fiscal incentives helped in increased buying.
For evaluating real estate as an investment option buyers can follow these parameters:
- The various loan options available from private and public finance companies and banks
- Check that the property under construction has scope of infrastructure development around
- While investing in a property, check if important facilities are present in vicinity like schools shopping centers, markets etc.
- Also, know about the capital appreciation potential and rental returns potential where you are buying the property
- Know about the property taxes required to paid
- Ensure that the money invested on property helped to maximize the tax benefits
According to surveys, the rental rates in India are among the highest in global realty market. It goes for the investment returns and capital appreciation, which is the highest in the world as compared to property markets of other developed nations. The residential property is always in demand for purposes of renting.
The investments in Real Estate India has gathered momentum as even the non resident Indians (NRIs) are investing in property market. The relaxation in FDI rules and tax benefits has encouraged the NRIs and they are buying properties in India. Investing in the real estate market of India can thus be called as the safe destination.