Monday, May 28, 2012

Favorable Time to invest in the Indian Real Estate

The rupee is depreciating everyday against the dollar. The stock market is ranking. These two seems to daily news headlines for some days now. While the currency market swings and has its effects on the stock exchange, the residential Indian Real estate is on buoyant position. With fast urbanization in the cities, buyers are using the real estate as an investment option.

The present realty picture for the Indian real estate is rosy.  Take the example of cities like Bangalore, a rapidly developing city that has demand from buyers across various price points. The growing number of employment opportunities in the city and more entrepreneurs showing interest in Bangalore properties, the demand is surely rising.

To investors, this is the good time to invest in property. Investing in the Indian real estate sector is a better option that in uncertain equity-based investment options. There is no doubt that property is a long-term asset, similar to equity. In addition, property is a tax efficient tool and generates good rentals in the temporary period. In addition, another good reason to invest in property in that returns on property is more as capital appreciation in realty registers more in the long term. And the best part, investing in property is more risk-free than equity as real estate is not as liquid as compared to equity funds.

Considering these factors, the Reserve Bank of India (the central bank of the country) has cut the repo rate in its last credit policy. This move will lower the home loan interest rates and as such will be a good move for the India realty space. The property rentals have recorded a rise as commercial development in the cities is coming up.

No comments:

Post a Comment

 

Blogger news