Is it a good time to invest in Real Estate

Given the current scenario of the real estate market the question that is on everybody`s mind is whether this is a good time to invest in real estate.

One of the best investment options traditionally, real estate has been one of the best performing asset classes, giving excellent returns over a sustained period of time. However in the wake of the current slowdown of the industry the biggest question that is on the mind of property buyers is whether this is the right time to invest in property.

The opinion is divided on this issue, while there are some experts who suggest the cautious approach; there are others who still think that this is the right time to invest in real estate.

Anuj Puri chairman and country head of JLL India a leading real estate consulting firm says that “For the astute real estate investor who has studied the market there are always lucrative opportunities for grabs”.

There are some cities which may perform better than other cities, also within a city there could be pockets performing better than other pockets, a savvy investors who is well informed can take advantage of these pockets and invest in real estate.

This is the precise reason we are seeing high investor activity in some high growth areas this because investors are not looking at the market as a whole- In a country like India there are always opportunities to be looked at in different cities.

Another factor that could drive the investment momentum further is the affordability factor, with developers focusing on building affordable homes/flats/apartments this can woo the potential investors to invest in real estate, also there is a substantial fall in prices of property which could encourage investors to invest.

With the government focused on economic growth, by launching many government projects like smart cities, housing for all and AMRUT, markets will surge forward and development will start happening at a faster pace once that happens prices of property could well go up again.

The basic fact of real estate investment is that it is never done as a short term option, the minimum investment time period for a good real estate investment portfolio is 5-7 years, if the objective is to gain maximum profitability from the investment, considering these possibilities even if projects that are performing marginally at this point in time can go up in the near future. This explains why real estate investment is done with a long time perspective and after a deep study of different markets and there future possibilities.