With economy showing positive signs of recovery, real estate buyers and sellers are seeing some activity again. The prices have already gone up by some 5-15% as compared to the prices in January. With festive season ahead (usually is sees 30-40% of the yearly sales) an investment in real estate could be a less riskier and profitable investment. But a hike in demand could see a downward trend if the Realtors decide to increase the prices artificially, leading to again unsold projects for the Realtors.
As per Cushman & Wakefield, the estimated demand it over 7.5 million units (across all sections and categories), out of which 4.5 million units are from Metros only. So if you want to invest in real estate for long term or for making your portfolio complete you have a good option to invest now. But maintain enough liquidity to hold the property till you get the right prices. In such a case, more liquid options could be making an investment in ‘REITs (Real Estate Investment Trusts), options, property oriented mutual funds, and other mortgage backed securities’.
Our View: See if you can find other avenues of investment to get handsome short term gains before making an investment in Real Estate for long term. Real Estate prices are often hiked by some players. So analyze if you are buying a property that has good growth potential. From a long term (5 year+) perspective, today’s real estate prices are attractive in many cases, almost every real estate, especially – residential and land – will see good appreciation from current levels.
Link: http://economictimes.indiatimes.com/articleshow/5070182.cms
http://economictimes.indiatimes.com/articleshow/5064201.cms