real estate sector is seeing a lot of activities these days. the investments in real estate are seen as less risky compared to that of stocks. but how does the return on investments in real estate vary with that of stocks?. wht are the expectatations of the clients considering real estate as an investment tool?...
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  • yes, Real estate investment is booming nowadays..lots of money inside it.:)
  • Investment return in real estate is also steady and never goes downward. If investment is done with care then it is always beneficial to invest in real estate.
  • investment in real estate is differentiated from stocks in one major attribute. real estate is usually bought in a highly leveraged state.

    so a 10% increase in value of house usually means a 100% increase to your actual investment.

    but conversely a 10% reduction means that your down payment is wiped out.

    RE has been booming last few years and so most people are claiming that it always goes up... but its prudent to use actual figures from past decade to
    see if it actually increases constantly.
  • investments in real estate...

    Investment in real estate is not always profitable. It depends on various factors like when u have purchased a property, when u sold it, location, etc.

    But one thing is sure that its a best option for long term investors like for 10 years or longer.

    I have seen prices increases in just one year from Rs 2550 per sq. ft to Rs 4500 per sq. ft in areas like Malwani, Malad (W), Mumbai. So in my opinion it a best option to invest in properties.

    However, having read in this forum about real estate prices are cooling off and the prices have dropped or will soon gradually see a slow down, which may be correct.

    But then again, has the prices really cooled off on the ground? Are there plently of supply of flats in Mumbai? All these factors should be surveyed and then concluded for making a investment in this sector.

    Thanks for reading,
  • Realty developers chant low-cost mantra to attract buyers

    Good News for new home buyers!

    The following is an article written by Lalatendu Mishra, Hindustan Times, published on 17 August 2008

    As rising interest rates and spiralling construction costs price out many aspiring homebuyers, real estate developers are changing strategy to keep their business going. They are increasingly switching either to so-called affordable housing projects or high-end customers, who mostly buy cash down or with limited amount of borrowing.

    Large numbers of developers are opting for low-cost housing to play on the volume game — the latest to come on board is Bangalore-based Puravankara Projects that announced plans last week to build 65,500 low-cost flats in five southern cities over the next five years. “We are deploying innovative and modern construction technology for faster and cost-efficient construction,” said Ashish Purvankara, director, Puravankara Projects. “Execution would be the key to success and the flats would be cheaper by more than 50 per cent of the existing prices.”

    The announcement came close on the heels of similar forays by Mumbai-based developer Matheran Realty and Delhi-based Omaxe Ltd.

    Omaxe is building 1 lakh houses across cities in northern India as part of what the company says would be a multi-phase Rs 80,000-crore rollout of 1 million low-cost houses in the country. The flats would be priced between Rs 1,000 and Rs 1,100 per square foot.

    More than 20,000 application forms sold out in the first two days of the offer, said Pravin Banavalikar, CEO of Matheran Realty. The firm plans to build 15,000 such flats in three years.

    “Most large developers have now woken up to the fact that affordable housing projects have the fastest absorption rates and are focusing on this,” said Anuj Puri, chairman of realty consultancy company Jones Lang LaSalle Meghraj.

    Although the housing stock in the urban area is far from what is needed, demand has slackened largely because the middle class has increasingly got priced out of the market with a sharp spike in interest rates and construction costs over the past year. As a result, developers are now looking to cut down on floor space and use such techniques that will enable them to offer houses that the buyer can afford.

    “The demand in terms of units is phenomenal and developers getting into this segment can build for years to come,” Puri said. “The buyers get what they want, and the developers benefit by the sheer economics of scale.”

    Good Luck to all

  • Real estate properties investment will always prove to be a good investment in the long run since real estate investments do well in this type of run.
  • Real estate is on boom so it is very obvious ROI will be very high.
  • wht are the expectatations of the clients considering real estate as an investment tool?
    Of course, they must be expecting high yields, but they need to remember that real estate investment is a more risky venture when compared to stocks.
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  • Will anyone will still support the price factor. Becos of the real estate Lehman Brother went for toss....
    Some will again come on the way. IT comp started firing people.
    Enjoy !!!;)
  • Real estate investment involves the commitment of funds to property with an aim to generate income through rental or lease and to achieve capital appreciation. Real estate refers to immovable property, such as land, and everything else that is permanently attached to it, such as buildings.