The Growth of =he Real Estate in India and How you can profit from it.



Indian realty is growing at 30%, particularly in Tier II and Tier III cities. The $15 b realty market is expected to reach $ 90 b within the next 8 years. If you have proper info, you can profit from this bullish market.

The rise of the middle class ( 500 million ), Non Resident Indians investing in Indian realty, Foreign Direct Investment entering the market, expansion of MNCs and Indian multinationals, proliferation of eduational instistutions, growth of IT, BPO, food processing & health care - all these are the factors responsible for the growth of Indian realty.

Chandigarh, Gurgaon, Vizag, Coimbatore, Kochi, Jaipur, Nagpur are some Tier II cities witnessing unprecedented boom.

Real estate prices are now not affordable to the common man. IT parks are proliferating and more and more MNCs are entering India. NRIs, traders, well settled doctors, lawyers, engineers are ready to spend crores for their dream lands. After purchasing these lands, they are spending 50/60 lakhs on construction. How can the common man, bereft of the much needed capital, afford houses or flats in India ? Trading is one of the reasons for the rise in prices, as a high potential nation industrialises slowly and steadily .

Many builders have stepped in the realty sector and they are buying old houses, renovating them and selling them off at a huge profit.

Across the length and breadth of India, real estate prices are skyrocketing, as NRIs and foreign firms fuel the demand of residential space and business. Whether you buy in South, North, West or East India, the chances of your capital appreciation is immense.

The Indian GDP is growing at 9.1% and India has already opened up the Realty, Agri and Retail sectors. Research has it that realty can give an average return of 8%. Realty prices are doubling in some Tier I cities like Bombay, Chennai, Bangalore etc. Residential prices have gone over Rs 5000 per sq feet and commercial prices are over Rs 10000 in Tier I cities. Goldman Sachs has predicted that the top six economies of the world in 2050 will be China, USA, India, Japan, Brazil and Russia! The demand for IT space is estimated at 66 million sq feet and commercial space 15 million sq feet.


There are three main types, flipping, speculating and investing.

Speculating

This is equal to the speculation in the stock market, when you buy a scrip and sell it when it rises. This is the wait and watch approach to realty investing and it requires a fairly good financial background, as you might end up owning homes before you decide to sell them. If you can identify the right property, you can make a lot of money. Speculators are on the rise, with loans becoming easier.


Flipping

This is the method of buying and selling properties in a short span of time. You just buy the property and when the prices go up, you sell. The advantage of Flipping is that you dont require vast amounts of money.

Investing

This is the method of investing and holding on for a longish time. The long term investor always benefits in a developing market. You have to choose your right market, You can find a low market. You should buy undeveloped land and hold on for a long time. Buy cheap, sell dear is the motto. You have to do your homework properly. You will find that successful real estate investors spend a lot of hours studying graphs and charts before investing. Future is unknown and nobody can predict what will happen in a years' time but a good investor can make an informed guess !