India’s upcoming property markets

Published: January 10, 2009
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What is happening to the real estate boom of the past three years? Is the sector maxed out? No, not by a long shot! What is happening is that development is traveling new paths to attract your investment.

When, at the end of 2006, you wrung your hands at the incredible land prices in the tech-driven metros, you probably felt that the real estate scenario was saturated and had to correct itself. Well, you were right. The real estate scene in the overstuffed cities has begun to correct itself in the face of flagging demand and RBI disapproval.

Reality bites
Some tier II towns such as Chandigarh, Pune and Gurgaon that had bloated on the expectation of investment have also experienced realty bites [sic]. You would still have to be brave to buy in these places because prices were on steroids till recently; they will take time to climb down to reasonable levels.

But the honeymoon continues
So, is the honeymoon over? Nope. India is a large country. There is much more land waiting to be developed. The fly-by-night developers who hoped to cash in on the boom are dropping out, because they do not have reserves to ride out the fall. Serious developers are using imaginative marketing strategies to prolong the boom.

Tier II has led to Tier III. You may now look at Nagpur, Nashik, Ludhiana, Agra, Bhopal and Ahmedabad, without the Joneses sneering at you. The inevitable spiral has already begun in these places, but they are still affordable; and more importantly, amenable to sensible development.

If you are spiritual, Ansal’s and other developers are taking over religious places like Hardwar, Mathura and Vrindavan to give you luxury, peace of mind and nirvana, all for the price of one home.

Indian real estate sector remains solid
If you would like further corroboration of the solidity of the Indian real estate sector, over $3 billion has been invested already, and big international names (over 90 of them) are bringing in an additional $10 billion shortly.

Do you think India is still one of the world’s best investments for your money? How about real estate? Which places do you think have the most potential? If you are not looking for property, have you invested in real estate funds instead?

Source: ChilliBreeze


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About Zamanzar

Zamanzar Advisory Pvt. Ltd. is a real estate advisory firm located in New Delhi, India. We offer online property search tools and offline services to help complete the transaction. Our services cater to real estate buyers, renters, and sellers. Visit Zamanzar to find out more!

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