'Now is not a good time to invest in real estate'
Feb 27, 2014
Source : The Times of India
THANE: Even as Thane city is witnessing a spurt in the number of residential projects being launched by developers, property consultants and experts are, however, divided over whether this is the right time to invest.

''The city has always been an option for first time buyers who find it difficult to afford the high-prices that are on offer in Mumbai. Since the last 18 months, there has been an oversupply situation has developed in the market,'' said M Joshi, a local broker. "In addition to the new launches, the apex court's recent decision to clear homes on forest land has released nearly 10,000 flats that are either ready or under construction have come in the market

. So, here is a huge market for end-users but not for investors who are looking for returns of over 20% in the current market,'' Joshi added.

Going by the prices compiled by the real estate rating and research firm, Liases Foras, different pockets in the Mumbai Metropolitan Region (MMR) and extended suburbs delivered a compound annual growth rate ( CAGR) of 20% or more for investments made in 2005. Simply put, people who bought real estate assets have seen their money multiply anywhere between 3.7 to 4.9 times, depending on the market they invested in then.

Om Ahuja, chief executive officer, residential services, Jones Lang LaSalle India, feels that it is definitely possible to create wealth through real estate investment as long as one keeps the fundamentals in mind. ''Effective investment in residential property requires a location to meet certain parameters. Fundamentally, the area should have good social infrastructure, availability of adequate public transport and sufficient economic activity to sustain development and growth."

"The investor should keep an eye on the market and sell the residential property at the right time in order to multiply wealth. If all the above precautions have been taken, the property should have appreciated at a consistent rate of 15% per annum for three years," said Ahuja adding that it is important to remember that one can almost never sell at the peak, just as it is impossible to always catch the lowest price.


Latest Realty News

Forest land: Maharashtra considers review plea against SC verdict
Feb 27, 2014
MUMBAI: The state government has sought legal opinion on whether it should file a review petition against the recent Supreme Court order removing the “private forest” tag attached to huge swathes of land across the state.
Wardhane cites need to revise city's DP
Feb 27, 2014
NAGPUR: In what can be termed as a big step towards proper planning of the city, municipal commissioner Shyam Wardhane has announced the need to change the city's development plan (DP). The civic chief also proposed a separate cell of structural engineers to examine old buildings and bridges in the city to prevent untoward incidents.
Slum rehab key to saving Dahisar mangroves
Feb 27, 2014
MUMBAI: Dahisar, the last suburb within Mumbai limits on the western track, primarily needs a comprehensive slum rehabilitation plan to protect its mangroves, free public space and allow affordable housing.
Real estate's top marketer
Feb 27, 2014
DELHI: Executives in the offices of the Lodha Group, Mumbai's premier real estate developer, describe their managing director, Abhishek Lodha, as a 'workaholic'. He works late till 1 or 2 am and then beats them to the office in the morning. Lately, however, they are missing his constant presence in the office in Mumbai's Mahalaxmi area. Lodha has been travelling to London frequently these days after the group bought properties worth Rs 3,900 crore in the British capital.
Unitech says servicing LIC loan; to clear it by March-end
Feb 27, 2014
MUMBAI: Real estate developer UnitechBSE -2.97 % has claimed that it has been regularly servicing the Rs 200-crore loan it had taken from LIC, even though a senior official of the life insurance major said they are looking into the account as it is a very serious matter.
Emerging commercial hubs of Mumbai
Feb 26, 2014
MUMBAI: With the number of commercial properties witnessing growth during the last decade in the city, an increasing number of locations are emerging as business hubs for specific sectors and products. These changing trends have taken shape over the last few years, where these areas are being targeted by commercial buyers. The new emerging business districts where maximum commercial activity is taking place, are Andheri-Jogeshwari, Malad-Goregaon, Powai-LBS Marg and Thane-Navi Mumbai. According
Rustomjee launches Oriana in Bandra East
Feb 25, 2014
MUMBAI: Rustomjee has announced the launch of Oriana, a 21 storeyed deluxe residential tower that is located off Western Express Highway, in the heart of Mumbai at Bandra (East). It is adjacent to Bandra Kurla Complex the prime business district and new financial hub of Mumbai.
Residents of Campa Cola resubmit documents to the BMC
Feb 25, 2014
MUMBAI: Residents of Campa Cola compound on February 20 submitted all relevant documents to Brihanmumbai Municipal Corporation (BMC) to find a solution to the ongoing issue arising out of orders to demolish their homes.
MIDC planning to buy Hind Organic plot near Mumbai
Feb 25, 2014
MUMBAI: Maharashtra Industrial Development Corporation (MIDC) plans to acquire a 600-acre plot owned by public sector Hindustan Organic ChemicalsBSE 4.99 % (HOC) on the outskirts of Mumbai as it looks to boost its land bank.
Ready reckoner painful for Mumbai real estate buyers
Feb 24, 2014
MUMBAI: The state government must review its latest ready reckoner (RR) rates, which is used to calculate market value of properties for payment of stamp duty and registration charges.

Latest Realty News Of State

Realty Talk's