Want to Buy Property? Now is the Right Time

Bangalore: The stock market outlook and slide in rupee value indicates that now is the right time to invest on property. In this current market scenario, the residential property market is in cheerful mode with global and domestic macroeconomic developments. The urbanization of cities are happening at a fast pace and driving the real estate as a good investment option, which is attracting a large number of potential buyers to invest on property. 

Fast-developing cities, such as Bangalore draw more attention with respect to property investment where properties of all price range are in huge demand.  The key reason is because more entrepreneurs are moving into the city and also the city is witnessing good employment options, which is leading to development of property sector.

The positive market outlook is mainly due to the reduction of the repo rate of Reserve Bank of India (RBI) in the last Credit Policy and the possibility of reduction in home loan interest rates, considering these factors the investment climate is improving for the property space. Now, there are too many price options available for investors and city outskirts are witnessing healthy real estate activities to attract buyers. Due to commercial developments, the rental growth has seen improvement in the last couple of quarters.

According to Anil Rego, an investment consultant, “Those with high exposure to equity should look at rebalancing the portfolio with property as an asset class in these times. Typically, property yields multi-bagger returns if held for around 10 years.” He further added that “Another advantage of real estate is minimal volatility,” reports Magicbricks.

Rego also stated that “High net worth individuals who don’t face EMI pressures are looking at property in the current market conditions.” Another good option nowadays is the budget housing. “Budget housing is a volume segment. The ticket size is lower. It is therefore much easier to exit from a budget housing option. This option is good especially if the rental yield is relatively higher,” said Rego.

With the fluctuating rupee-dollar price, more number of NRIs can make their investments in real estate sector of India. Zahed Mahmood, a city-based realtor said that “NRIs who may have some plans of coming back at a later stage find this a good time to buy property. These NRIs are looking at apartments and properties that fetch good rental incomes. Also, fence-sitters are taking decisions now with the rupee over 53 to the dollar.”  According to industry watchers, this trend will continue to grow in coming months as well.