Safe real estate investment options
With the Indian currency being at its depreciating best, inflation continues to be on a high. The Reserve Bank of India (RBI) as a result, is timorous in dallying any thoughts of reducing the interest rates. Which provides the prospective home-buyers with enough reasons to delay their plans of buying a property/home of their own; at least till the coming of preferable tidings. Indubitably, the current scenario is not amongst the best of times for either the property developers or buyers as well as the real estate industry in general. However, a huge cross section of the industry believe and regard this as a part of the industry cycle. Additionally, the situation is not completely as arid as it is being made out to be, eve though the sales figures are bordering on the lower side as well as the rate of conversions beginning from enquiry to the actual sale, too has come down. In contrast, the realty sector has not been sitting idle either with numerous huge transactions in the pipeline, new launches are commonplace albeit in a limited manner and a multitude of deals are taking place.
According to the national president of Credai – Lalit Kumar Jain, in all there are three categories of buyers that exist. Foremost being the genuine need-based buyer. For buyers such as these, neither bad market conditions nor higher interest rate matter; almost seventy per cent of buyers fall under this classification. For such buyers, it would be safe to assume, that the rate of interest would not exceed 10 per cent on a twenty years call. Up next is the category of the retail investors who seek investments in a second or third home. For such investors, factors such as unyielding market conditions and rate of interest would considerably matter. The final classification is of the bulk investors, who similar to the need-based buyer, do not give much consideration to negative market conditions. In fact, the best investment opportunities are presented by a downward market.
The realty sector’s accomplishment is extensively influenced by the exploits of the economy and businesses in specific. On account of the structure and fabric of how the country operates, decision-makers are in a state of indeterminacy. On the contrary of the sector’s inherent uncertainties are also the opportunities created by them. Investors stand to significantly capitalize from these opportunities. However, the obvious prime concerns within such, an environment of uncertainty is the security of the invested capital along with returns through capital appreciation. The answer to the pertinent question of where to invest, needs to be contemplated.
In order to answer the same, a list of specific micro-markets across major Indian cities such as Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune. These hot spots, may offer improved returns on investment and appreciation of capital to both investors and home-buyers. On the basis of scenarios presented by the various micro-markets of these cities, the opportunities and pitfalls within the commercial, retail and residential property space segments are highlighted. Eight sub-markets have been categorized as emerging hot spots on account of the economic activity, social and physical infrastructure growth.
A surge in realty development among these sub-markets is realized due to the contributions of these positive factors. In the midst of the current economic conditions and the complexities surrounding the realty sector of India, these sub-markets, which could be regarded as the next substitute to the key markets, are probably and relatively safer havens for investment.While accessibility to and availability of, social facilities like healthcare, schools and hotels allure home buyers, these sub-markets being an alternate affordable locations, have been receiving higher preference by commercial occupiers as well. The scatheless amalgation of residential and commercial developments within these regions are acting as drivers towards increasing the retail demand as well.
The eight sub markets that have been categorized as emerging hot spots are Noida & Greater Noida; Thane and Navi Mumbai at Mumbai; Whitefield in Bangalore; Southern suburbs of Chennai; Viman Nagar-Nagar Rd in Pune; Gachibowli in Hyderabad and Rajarhat in Kolkata.
