Real Estate Forums

In the backdrop of soaring realty prices high interest rates, stock market volatility and firming up of bank FD rates, the big question is whether investment in real estate still a lucrative proposition. Also when the real estate markets are in correctional mode and headed for value zone, it is equally important to know whether one should postpone the decision to buy India Property and whether one should hold on to the existing property or sell it off.

Some experts call for wait and watch policy and advise property buyers to be on look out for property available on good terms. They caution against investing in overheated markets. They says that it is better to postpone the property buying by about six months especially for investment as interest rates will further go up, there by dragging property prices down. But there are others who maintain that it is good time to buy property as real estate sector is expected to remain subdued to stable in next six months due to interest rates hikes and fund crunch to developers ands end users.
if a person is interested in buying property he should do it now and not wait for the market to further cool off particularly as 10-15% correction in real estate prices has already happened in some select overheated markets. High interest rates should not prove as deterrent because the tax benefits amply compensate for that.
What’s the expert advise for investment in real estate equities which have got severe beating as a result of which retail investors have sunk in lot of money. Equity experts also agree that currently investment in real estate is a safer bet as it offers better value than property stocks because Asian stock market including Indian market is quite volatile and vulnerable.
After tough disclosure norms adopted by SEBI about real estate IPO’s, the risk related to their over valuation has definitely got minimized especially as SEBI’s action will work as a deterrent for real estate companies adopting fraudulent means to enter the IPO market.