 |
Investing in realty is a safer option than buying a share |
|
|
Submitted by Janeane Carnagie
| RSS Feed
| Add Comment
| Bookmark Me!
As BSF Sensex danced furiously, many questions were raised as to what are the safe and less volatile options for investments. Questions were also asked whether the real estate market, which has witnessed potential jump in past couple of years, would undergo some kind of correction.
Some of the large-cap real estate stocks such as Mahindra Gesco and Ansal Properties fell by almost 50 percent from their peak levels. Other stocks like Unitech and Lok Housing did not fall much – since they hit the filter on 5 percent movement.
Some industry players feel that there are pocket of tier 2 and tier 3 cities in north India, which have seen massive escalation of price over the last six to twelve months, which may not be sustainable in the long run. Whether the stock market meltdown triggers a correction in these markets remains to be seen.
On the whole, rising real estate prices may take a breather in certain areas but there will be no holding them back.
Consultancy firm Cushman&Wakefield study says Urban India alone requires 12 million housing units with scope for 400 townships in 5 years across 30-35 cities, each with five lakh population.
Prices of homes in India hqave on average tripled in the last two years and will probably expand fourfold in the next three to four years.
In fact, Real Estate benefits in either case – whether the sensex booms or tumbles. The profits booked in scripts are invested in real estate as a safe investment and when the stock tumble, investments are diverted to real estate market to square off losses.
This article is sponsored by: www.indiarealestateblog.com
|
|
|
|
|
LinkedIn Recommendation:
 Sean Nelson - We improve your conversions by at least 20% or you pay nothing for our work. - Teo is on the cutting edge of the social media scene. I've had the opportunity to share the stage with him at a forum on Social Media and to also follow his progress with the Net Teams site. Not many people get the whole picture when it comes to social media. He does and he's helping rewrite how social media interacts with chambers of commerce. - May 15, 2008, Sean was with another company when working with Teo at Net-Teams, Inc. |
|
Featured [Investing] Articles:
|
|
