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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 market.
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
is immense.
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.
There
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 becoming easier.
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 guess !
Contributing Author: G Kumar, ceo of
www.realtyspeculation.com
eastro@dataone.in
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:info@eastrovedica.com?subject=SubscribeZF.
His Astro blog is up at http://www.zodiacastrology.blogspot.com
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