Investing in Property in India

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Purchasing property in India

If you are thinking of purchasing an immovable property in India you should have full information on the different investment options, properties in India, popular property sites in India, and check out the properties currently on sale in India. There are a few trends that favor purchasing property in India.

  • Statistics on popular property sites in India

    Let’s look at some numbers. According to a recent Pricewaterhouse Coopers study, India is leading as a top real estate investment market in Asia. The study was done in partnership with Urban Land Institute, a global non-profit education and research institute and the report was released in December 2009. Some interesting pointers in the report include
    • Rating Mumbai and Delhi as one of the prime real estate hotspots in Asia,
    • Ranking India as a good real estate investment destination, and,
    • Giving more importance to residential properties in comparison to other sectors,
    • Ranking Mumbai, Delhi, and Bangalore at the top the pack in the hotel ‘buy’ prospects as well.
  • India is a growing hub for trade, commerce, and technology

    India is a growing hub for trade, commerce, and technology. For example, Bangalore, Pune, and Hyderabad are important technology cities. With the influx of jobs and human beings, there is a need for more homes, more offices, more shopping malls, and infrastructure. This creates opportunity for the real estate investor. This also means the real estate market is fairly large. You can invest in residential properties. You can invest in commercial shops. You can invest in restaurants, fast food chains, housing projects or hotels. You can invest in amusement parks and shopping malls. There is a vista of investment opportunities in India.
  • India and the global recession

    The real estate market in India has been very investment worthy for the past few years. The global economic recession pushed the prices of residential and commercial properties down. This made real estate a ‘buyer friendly’ market. Ironically, India did not suffer as much as North America and many OECD countries did during the global economic recession. It is expected that as the global economy improves, the hotel usage will also go up. This makes investing in real estate properties in India all the more interesting.
  • Don’t put your eggs in only one basket!

    There is an old saying ‘do not place your eggs in one basket’. For a Non Resident Indian who wants to diversify his investment, it makes sense to put some money into stocks and units, gold, real estate, and other investment vehicles. Purchasing a property in India is a step towards diversification. If his investments in U.S. go south at least there is a chance of having something safe in India. Hence investing in property in India is a great option for people who want to diversify their portfolio. And if you are good at timing, there is no point of wasting time on a single investment!

Real estate is more than homes

Gone are the days when a property meant buying a single family home or an apartment. Nowadays, investors are looking at multiple options to invest wisely. To quote some statistics released by the Department of Industrial Policy and Promotion (DIPP), housing and real estate sector market attracted foreign direct investment (FDI) worth US$ 8.4 billion for the 10 year period of April 2000 to March 2010. These projects primarily included:

  • Cineplex,
  • Multiplex,
  • Integrated townships, and,
  • Commercial complexes

In the year 2009-2010 the FDI attracted worth US$2.8 billion in the real estate and the housing sector. If so much money is being poured into the property sites in India, you should also think about making an investment. Owning a property that does not do wonders in a great market but has stability in a rough market adds lot of value to the overall portfolio. So if you are thinking of purchasing a property in India, think about your favorite city and choose an investment option that fits within your investment criteria.



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