The real estate market is maturing in India. The largely unorganised sector is now coming under a strict regulatory framework and the government is keen on bringing in transparency. The sector is poised to participate in the India growth story and the ones leading this change are the buyers. Every day we see new areas being developed, cities in expansion, commercial development growing and small town joining the real estate game in India. Buyers are becoming more diverse in their investments today and real estate is still a lucrative market for investors.
Property investment has a restricted supply and thus the earlier you get into the game the more likely you are to gain profits. A lot of people tend to think that watching the market and waiting for the right time is the way to approach real estate but in this market it would mean higher costs, more restrictions and possibly a diminishing seller base. Thus the basic principle of real estate is that the earlier you invest the better. Historically real estate has given positive returns to its investors and in many cases investments have even reached 10 times the original purchase value.
The Prime Minister, Narendra Modi, had announced the creation of 100 smart cities in India and this is a huge boost to the real estate market with focus on quality constructions, verified builders and strict guidance. There is also a current demand for over 40 million houses under ‘housing for all’ by 2022 as announced by the Government of India. Redevelopment is also a huge investor market that is opening up opportunities for all in the cities. These are the huge drivers for the real estate market.
The market is becoming largely a buyer driven market with sellers willing to accept 20% as down payment until delivery of the project offering relief from pre-EMI loans to buyers. The most important rule in investment is to first buy a home for personal use before buying property to generate additional revenue sources. Banks are also supportive of buyers and have extended loans and competitive rates being at its lowest of 8.3%
Real estate is in the centre of India’s growth story and it will lead to some rapid economic and social changes. The businesses are becoming healthier with bad players moving out owing to regulatory requirements. There is an increased demand from the growing Indian middle class to invest into housing and land related real estate and this increase in buyer base will further strengthen the market. Investors who wish to participate in the growth story would have to be invested into real estate today.