Indian realty is
growing at 30%, particularly in Tier II and Tier III cities.
The $15 b realty market is expected to reach $ 90 b within the next
8 years. If you have proper info, you can profit from this bullish
Factors Responsible For The Growth of Indian Realty -
The rise of the
middle class (500 million), Non Resident Indians investing in Indian
realty, Foreign Direct Investment entering the market, expansion
of MNCs and Indian multinationals, proliferation of eduational instistutions,
growth of IT, BPO, food processing & health care - all
these are the factors responsible for the growth of Indian realty.
Chandigarh, Gurgaon, Vizag, Coimbatore, Kochi, Jaipur, Nagpur are
some Tier II cities witnessing unprecedented boom.
Real estate prices are now not affordable to the common man.
IT parks are proliferating and more and more MNCs are entering India.
NRIs, traders, well settled doctors, lawyers, engineers
are ready to spend crores for their dream lands. After purchasing
these lands, they are spending 50/60 lakhs on construction. How
can the common man, bereft of the much needed capital, afford houses
or flats in India ? Trading is one of the reasons for the rise in
prices, as a high potential nation industrialises slowly and steadily
Many builders have stepped in the realty sector and they
are buying old houses, renovating them and selling them off at a
huge profit. Across the length and breadth of India, real estate
prices are skyrocketing, as NRIs and foreign firms fuel the
demand of residential space and business. Whether you buy in South,
North, West or East India, the chances of your capital appreciation
The Indian GDP is growing at 9.1% and India has already opened
up the Realty, Agri and Retail sectors. Research has it that realty
can give an average return of 8%. Realty prices are doubling in
some TIer I cities like Bombay, Chennai, Bangalore etc. Residential
prices have gone over Rs 5000 per sq feet and commercial prices
are over Rs 10000 in Tier I cities. Goldman Sachs has predicted
that the top six economies of the world in 2050 will be China, USA,
India, Japan, Brazil and Russia! The demand for IT space is estimated
at 66 million sq feet and commercial space 15 million sq feet.
are three main types, flipping, speculating and investing.
Speculating - This is equal to the speculation in the
stock market, when you buy a scrip and sell it when it rises. This
is the wait and watch approach to realty investing and it requires
a fairly good financial background, as you might end up owning homes
before you decide to sell them. If you can identify the right property,
you can make a lot of money. Speculators are on the rise, with loans
Flipping - This is the method
of buying and selling properties in a short span of time. You just
buy the property and when the prices go up, you sell. The advantage
of Flipping is that you don't require vast amounts of money.
Investing - This is the method
of investing and holding on for a longish time. The long term investor
always benefits in a developing market. You have to choose your
right market, You can find a low market. You should buy undeveloped
land and hold on for a long time. Buy cheap, sell dear is the motto.
You have to do your homework properly. You will find that successful
real estate investors spend a lot of hours studying graphs and charts
before investing. Future is unknown and nobody can predict what
will happen in a years' time but a good investor can make an informed
Author: G Kumar, ceo of www.realtyspeculation.com
Recently he was awarded a Certificate by the Planetary Gemologists
Association Global as a Planetary Gem Advisor. He has 25 years psychic
research experience in the esoteric arts. To subscribe to his free
informative Ezine, the Z Files mailto:email@example.com?subject=SubscribeZF.
His Astro blog is up at http://www.zodiacastrology.blogspot.com