http://economictimes.indiatimes.com/markets/real-estate/realty-trends/realty-sector-holds-many-options-to-suit-every-investor-segment/articleshow/11930649.cms
Realty sector holds many options to suit every investor segment - The Economic T
imes
The population of cities in India will increase to 590 million by 2030. The scale and speed of urban transformation here over the next 18 years will beat any development that has happened anywhere in the world, except in China, according to a McKinsey Global Institute survey.
Urbanisation will spread out across the country, impacting almost every State. Five large States, Tamil Nadu, Gujarat, Maharashtra, Karnataka and Punjab, will have more of their population living in cities than in villages.
In a nutshell, 700-900 million sq mts of commercial and residential space needs to be built, or in other words, a Chicago has to be added on every year. The ensuing investment opportunities in different areas, particularly in real estate, need not be stressed any further.
The capacity to invest and the need vary depending on the individual, but there is an opportunity for every investor in real estate. For small investors who do not need housing immediately, investments in plotted developments are suggested, as land appreciates much faster than built spaces.
This is because of the simultaneous development in transport, connectivity and other infrastructure around. Areas close to industrial corridors, housing colonies and proposed transport corridors will be good for such investors in the long run, say industry experts monitoring investment trends in real estate.
Plot loans are now available from a number of housing finance companies and banks though at a higher lending rate than home loans. But it is still beneficial for investors parking money in plotted development projects to source funds through site loans as the due diligence process will also be done by the financial institution.
A number of layouts in north Bangalore in the price range of Rs 2,000-3,000 per sqft with a online casinos no download site loan option can be considered for a medium to long-term investment, according to property consultants. Further, improved connectivity to Electronic City and Bidadi along Mysore Road offers potential avenues for investments in plotted developments. Yet another belt is Hosur Road where industrial development is picking up and a number of plotted developments are under various stages of implementation.
Investment options in residential property in and around the city abound. The yield begins at four percent and depending on the location, specification, type of development and amenities offered in the project, goes up. The capital appreciation and fiscal sops add to the investment value.
There are row houses and villas coming up in the suburban and peripheral areas of the city. A distinct advantage of such options is they come with larger site areas that enhance the returns from the investment. There are pre-launch offers made during soft launches by some developers for investments in residential projects. The average yield can range between 18 and 25 percent during the project implementation stage.
Arun Gupta
