Tag Archives: Middle East

Can The Investor Make Good Returns From Property In India Now

Reportedly, the investor can make good returns from property in India now and the days ahead. The other day a family friend of mine enquired me from the Middle East as to the prospects of investing in real estate in India now. Often people from many quarters ask me about the real estate scenario in India now. I am used to give emphatically affirmative responses to these Indian property queries. Of course, these interrogatories emanate from the recent recession in the Indian property market. The recession was chiefly due to the fall out of the economic downturn that the world has witnessed and most of the economies continue to witness recession even now.

If investors are prudent enough to perceive the subtle nuances of the market and foresee the prospects of investing accordingly, they can make good returns from property in India now. As stated before, the market has passed through a slump recently. Though the slump still exists in most parts of the world, in India it is in the waning phase. This recuperation of the national economy has been instrumental for the nascent phenomenon of ubiquitous interest in Indian properties. A World Bank study shows that in the coming years, Indian economy will register a consistent annual growth of 5-8%. China also will show growth in the scenario where most of the economies of the world show downward trends. This increase in the growth of the Growth National Product (GNP) will have a direct bearing on the property sector in the country. These particular trends and tendencies subsisting in the financial and investment scenario have collectively catalyzed the new momentum in the property sector in India.

While we analyze the prospects of the investor making good returns from now, it would be enlightening to have a look on the latest trend in property in the main centres of India. Among the metropolitan regions in the country, Gurgaon in the Delhi National Capital Region (NCR) has registered the maximum growth in property prices in the previous quarter. In Gurgaon, prime commercial properties have shown an appreciation of 20% to 25% in the latest quarter as against the national average in the metropolitan regions of 15% to 23%. Delhi properties also have shown considerable appreciation during the corresponding period. In Delhi, prime commercial properties have shown an appreciation of 18% to 24% during the period. The significance of Gurgaon in the property market of India is due to the higher concentration of corporate offices in the city.