India Property – the price to set HIGH

The market study says, price of Indian residential property have increased in the last one year and is going to be the same in the coming future which means buying flats close to commercial areas will help the investors to get good return due to the high rental income. Indian real estate, especially housing property needs the government's support for future growth. The government should consider restructuring interest rates on home loans to attract larger base of lower and middle income group to benefit.

A new code of conduct has been agreed by the Confederation of Real Estate Developers Associations of India (CREDAI) with the aim of resolving complaints about the housing buying process. This week Abu Dhabi Investment Authority (ADIA) made an announcement that it is about to make direct investments in the Indian real estate sector.

ADIA has invested money in Indian's International property market through a variety of real estate and private equity funds and total holdings in India are estimated to be worth between $400 million and $500 million. To look for direct real estate opportunities in India, the sovereign fund is looking to hire a fund manager from a private equity firm. The news comes as many developers in India are seeking funds to begin new projects and to reduce their debts, which currently stand at 1.8 trillion rupees approx.

However the demand of 1BHK and 2BHK flats in the central areas and the suburbs is high. But the investors should do some basic research about how many flats are sold and about how much construction work has been done yet before investing to get surety that more likely the builders will complete the project. Investment in India property will give better returns than on any other assets. Buying from the reputed builders is also advisable as they complete their projects on time as delay may affect their reputation in the market. Some developers in major realty towns like Gurgaon, Noida, Mumbai, Bangalore and Chennai are offering discounts, ranging anywhere between 10% and 25%, sometimes in the form of direct discounts and sometimes in the garb of unique payment plans.

At Indian property market there are two cities where the property prices set to fly rise; the lands in Noida and Greater Noida will make houses costlier in both cities. Out of 54 villages in Noida 40 have been agitating for plots for years. So, more land is still required. There will be no land left for allotment to developers. Demand for land is ever increasing; land prices are bound to go up considerably.