Concrete Returns on Investments
Like all investments, real estate prices too are linked to demand-supply equations. Therefore, the solution is to study the market and identify locations where demand outstrips supply and should continue to do so going ahead for a few years as well. Emerging locations that still have a long way to go before reaching their development potential are another good bet.
Rajiv Sabharwal, executive director, ICICI Bank Ltd, points out that there is a huge demand for real estate. “I don’t see the need or appetite for housing going down. The state government has done a lot getting more transparency in the approval process. The only thing we should do now is see how we can ensure housing options multiply, increase supply and predictable delivery.”
Manish Mehta, vice president, Indiahomes, opines that if property purchase is for investment purposes and the buyer has a time window of 8 to 10 months, then waiting for an under-construction project is advisable. If booked at right time, the basic selling price is most likely to be cheaper in comparison to what it might cost in 2014. Moreover, in a city like Mumbai, premiums on properties can be monetized within a short span of 6 months from the date of booking. So the buyer will have an option of either selling the property in 6 months for the premium and invest it further or avail it for one’s habitation.
by Pooja Vora for DNA
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