Value buying

Real estate market is seen as India’s one of the biggest money producer over the long term. Those people who have invested in property or property shares have got higher returns. Properties bought in big cities in posh area for new lakhs are worth crores, surging 25-26 pc per annum.

After almost a decade and half of property rise, the process are stable and are affected by slowdown in the economy, higher interest rate and new funding rules by RBI. Liquidity in the market is drying and the prices of some recent peak hottest property destinations are getting corrected by 10-15 pc. It seems like real estate market is over for sometime. The market will crawl to find its desired destination.

These days property market is more restricted than people thing. If the prices in big cities fall it does not mean that the price is falling in other markets. The demand will arise at the right price.

But the huge rise in property prices should go under some correction. If we are finding a residential property at 3,000 per sq ft in Delhi-NCR it seems a good buy for a long term investment. Since property is growing in other parts of the country one must try to explore in the small towns also.

An investor need to be selective and cautious before investing as not every property one buys turns out be a goldmine, unless the investor is in one of the rising periods.

In the current scenario, the land owners are desperate after 2-3 years stagnation and the developers are unable to oblige them and they land mind get cheaper and increasingly available. This could bring down the property cost and make property more affordable in near future.

Selecting right property in the volatile market is a tough task. It need research, high conviction and huge amount of patience. Investor ignores liquidity risks in real estate and end up over investing. If the investment is done in a wrong place it might take long time to deliver the goods.