How to identify the right property market?
Although the Indian Real Estate market is skyrocketing; constant fluctuations in property prices seem to be inevitable. The value of property in India has grown three folds as compared to yester years. Perhaps it so happens that most of the buyers are ignorant of the actual market value of a property and are compelled to go ahead with the prevailing market prices.
It is important that an investor considers buying a property at an appropriate price; be it an investment or a long term plan. However, in order to do this, an investor has to be aware of the prevailing present market condition, the market before and the future forecast.
How can a buyer keep track of the prevailing market conditions?
The key market triggers to keep in mind are:
– The prevailing infrastructural readiness
– The set timelines for the infrastructure projects
– The demand growth for the commercial/residential space in realty market
– The prevailing price trends and the development of the social infrastructure
Which are the prevailing top cities for investment?
With the current market trends in effect, the following cities are appropriate for commercial/residential investment.
– Bangalore
– Hyderabad
– Noida
– Navi Mumbai
– Chennai
– Pune
The factors responsible for the growth in these cities have been quite visible and the current commercial real estate trend has been reflecting the expansion and growth of the commercial units.
Cities like Hyderabad, Pune and Bangalore have been witnessing a great demand in Grade A commercial spaces wherein the demand has been exceeding the supply schedule of the near and long-term future.
Other cities like Noida and Navi Mumbai have market drivers above the job creation at play which is the advanced infrastructure and affordability. These cities are also witnessing an investor demand from other cities like Delhi and Mumbai with affordability being the key driving factor for investors. There are also increased chances of investment potential in areas like Kharghar, Kalamboli and Ulwe with Noida Expressway and Noida extension in Noida.
The coming years will see an increased demand for residential properties due to the massive job creation. Job creation has always been a key trigger for increased residential property demand. The core buyers of residential apartments are the employees from the IT/ITES and BFSI industries.
Talking about the present absorption of the residential apartments in cities like Bangalore, Pune, Hyderabad and Chennai, there has been a great demand from the IT/ITES and the BFSI employees.
With an easy access to the mortgages and a desire to own an independent home, the residential realty market has been witnessing a great change. Apartments being the need of hour are offered by developers within a price range of Rs. 40 lakh-1 crore.
Henceforth, a property buyer should be aware of the prevailing market dynamics, rate of supply of the residential stock, the price trends and the rental yields. The perfect period over which one should invest is over 4-5 years as this sort of an investment will avoid risks and fetches greater property appreciations despite the short-to-medium term market situations.
Related Real Estate Articles:
Investing in hot property market
Property market expectations in 2013
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
