My friend and I have been following the boom in the Indian real estate for just one-year and it came to us as a surprise the way individuals and investors think and converse when the market is buzzing.
We found that land prices in the country are spiraling upwards with 25-30% increase but are you keen in mining gold out of Indian real estate? If this sounds interesting, than there are many unexplored options in India just waiting to be uncovered, however they call for little foresight and an uncanny understanding of the Indian dynamics. Things are not as easy as they sound or appear on the screen sitting here in USA but at the same time there are not that bad either. Different players are trying to structure the industry from different angles, be it CB Richard Ellis or ICICI Home Search. Most of all, we want to be part of it but we are also skeptical, After all, no one wants to lose money after investing capital in real estate.
One can certainly explore properties all over the country to find developers offering premium properties in unknown, upcoming areas and some without even getting proper licenses. The question is how to find the right ones, be with them and get services from them. With information from initiatives like 99 acres, servicing from atOnePlace, talking to our relatives in India and some professionals from the real estate field, we discovered that though information holds the key to trust, yet final decisions are still governed by personal references specially your father in Law, if you have one. Startling it may sound but it does remain a fact. Ask some around you…and you will knowJ
Words like residential developments, malls, commercial centers, information technology hubs, foreign direct investment, and RITES can be heard in every conversation, every social gathering or casual family get together in common Indian household. The other reasons that’s driving the housing and real estate boom in the country is NRI capital inflow. As per the statistics, the year 2005 saw an inflow of around 90,000 crore. Till a few years back only China was the only country known to grow with FDI coming in from Chinese living abroad. We finally seem to be catching up with our neighbors.
The reason behind heavy NRI investment may be the long-term view about India, given the upcoming Indian middle class and the overall growth prospects. So today Non-resident Indians are busy buying, selling and driving the property market, sitting comfortably at home. Or may be its a simplest way to step into their native land.
Appreciation of the land prices in a country is based on long term time frame that ultimately depends on factors like high density, industrial demand, growth concentration, and government initiatives. Along with this, clubbing of commercial and residential areas in high growth regions continues to raise demand for integrated townships, satellite town planning and other emerging concepts. In the foreseeable future, commercial property – hotels, retail and office segments will share the growth rate of Indian growth. Today the Indian real estate sector is valued at around $12billion and statistics do reveal that it is growing at a rate of 30%. Impressive by any standards….Things look good and I may have missed a few key points, but with little care, support from sector players and a pinch of diligence, one can invest and see the investment grow in India at rates not offered by any developed country.
