Investors Return to Real Estate Sector
Investors are making a comeback in the real estate sector, primarily driven by the prospects of long-term capitalization and an anticipated rise in the sector's fortunes.
Reasons for the Return
- Long Term Capitalization: Investors see potential for sustained growth in the real estate market.
- Expected Rise: There is optimism about the future of this sector, encouraging investors to return.
Current Investment Levels
However, the volume of current investments is not as robust as it was before the recession. Anil Kumar, the Chief Financial Officer of Mantri Developers, highlights that while there is a considerable amount of investment presently, it is expected to grow further in the future.
Scope for Capital Appreciation
Kumar also notes that real estate prices, which saw a significant drop during the recessionary period, now have substantial room for capital appreciation in the future.
Typical Investors in Indian Real Estate
In India, typical investors in residential properties include:
- Non-Resident Indians (NRIs)
- High Net Worth Individuals (HNIs)
- Domestic investors
- Professionals with substantial disposable incomes
Analyst Perspective
Analysts, however, present a different view. While they acknowledge that current investments are higher than during the recession, they express concern that the uptake is not encouraging due to the recent price increases by developers.
May 04, 2010