Rupee depreciation; wise to invest in real estate market or not

Q: I am looking for a property and this is my first investment. I am a bit confused whether it is the right time to invest in the Bangalore real estate market? Is it a good idea to invest in a market where rupee is depreciating? Will there be more rupee depreciation in the coming future?Which is a better option buying ready-to-move-in apartments or pre launch project?

Hanif Laskar, Bangalore

27th August 2013

Real estate News in Bangalore

property buying

bangalore real estate

real estate market

rupee depreciation

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Replies (2)

Internationally, real estate displays a very different trend in terms of returns and growth. Rental yield is in the 4-7 percent range and annual growth in many parts of the world is approximately 4-5 percent annually.

Javed,

28th August 2013

Comment

Yes and many Indians chose to diversify and increase their exposure to international real estate to ensure steady rental revenue streams for their families abroad, and / or provide accommodation for their own use during their foreign sojourn.

Vivek Kulkarni,

28th August 2013

Indian Investors still believe that real estate is an ideal investment avenue when it comes to safety, returns and growth. In an environment where international real estate is no longer an option, we will see more money chasing attractive assets that offer good returns within the country.

Supratim,

28th August 2013

Now indians have to rethink their plans as the Reserve Bank of India has barred Indian residents from using local funds to buy immovable property abroad as part of its efforts to curb outflows of foreign exchange.

Vivek Kulkarni,

28th August 2013

Comment

Most overseas markets also offer higher rental yields on capital values compared to the average of 2 percent in India now. In the UK, Dubai and Singapore, rental yields are over 5 percent, adding to investors’ cash flow.

Supratim,

28th August 2013

@Hanif...i think if you are planning to buy...don't sell it withing 4 or 6 months. It's of no use. If you sell it after 2 years you can expect appreciation around 15 perc.

Balwinder Singh,

28th August 2013