Real estate is believed as safest investment in India, in past real estate has given good returns, but from last one year we have seen that real estate market has started declining. In last few quarters real estate price dropped by 5-6% in major city of India.
Many people said that it is now end and real estate bubble will blast anytime in India, but today story is different real estate price are going up in major city of India as per NHB.
NHB (National Housing Bank) has published city wise housing price index for last quarter of 2013 (OCTOBER-DECEMBER, 2013) as per this index real estate price in India is still going up. Survey indicates that in 15 city price rise is observed.
Major city where price is growing are Chennai, Pune, Hyderabad, Ahmedabad, Banglore and Delhi.
Residex for 2013:-
Why Real estate price are still going Up?
You must be thinking that why real estate price are going up. Home loan rates are increasing, economy is observing downturn and real estate price are growing!
We are herewith few pointers in this direction.
(1) Black Money:-
India is stated as one of the most corrupt country in world. In India only 4-5% of population pay taxes. And perhaps black economy of India is larger than actual economy. Real estate market is governed by black money.
Corrupt politicians, Businessman actually hold & produces large amount of black money. They park that black money in to real estate sector and hence real estate price are going up.
(2) Growing Infrastructure:-
India is fastest growing country in terms of Infrastructure. Lot of infrastructure development projects are being executed now a day. With increase in infrastructure and facility it is quite obvious that real estate price will likely to increase.
This quarter price rise is observed in Chennai, Pune, Hyderabad, Ahmedabad, Banglore and Delhi, where major development and infrastructure projects are in progress.
(3) Prospective Investors are ready to pay more:-
Property purchase is done either for living purpose or for investment. Today property is purchase is done mostly for investment.
In city like Chennai, Pune, Hyderabad, Ahmedabad, Banglore and Delhi, prospective investors are ready to pay more due to growth in purchase power & Income.
That is the reason that real estate price are growing in these cities.
Will this trend continue?
Well it is very difficult to predict real estate market. One needs to consider multiple factors for predicting market.
I am not real estate expert and will not predict anything about real estate market but from past history I can say that real estate is one of the safe investment options and will likely to give good return in future.
I should buy Property or wait?
If you do not own any property and want to buy property for self living you should buy it immediately, it is better to live in self own property rather than renting it.
For Investors I advice please hold your buying decision, Just wait and watch the property market. Still if you have excessive money and you have decided to buy property for Investment you must consider various factors before buying property.
Please go through my article about Before Buying property for Investment.
What do you say about Property Market in India?
Do share your views in Comment section!
