Is This the Best Time to Buy Real Estate in India?

Is this the best time to buy property in India? This is the primary consideration of all those who are interested in investing in the real estate sector in India now. This apprehension regarding the suitability of the time is relevant since the market has passed through a certain slump recently. This recession is not specific to the Indian real estate industry; rather it has been a global phenomenon, a fall out of the world economic meltdown. However, the estimates, assessments and speculations of industry sources and investment pundits augur well for the sanguine temperament of the prospective investors.

It is estimated that by the end of 2009, the Indian real estate scene will witness tremendous growth due to multiple catalyzing factors. This recovery from a transient slump in the market is primarily due to the macro-economic and sector-specific factors. An international expert on property matters (Jones Lang LaSalle) has stated, "economic recovery during CY 2010-11 is likely to reinvigorate the interest of foreign investors in India's real estate market. We expect enhanced capital inflow in the real estate sector in the medium-to-long-term". The economies of the advanced world are expected to contract by 3.8 per cent, as per an IMF assessment. But, during the projected period, Asian economies such as India and China are expected to record a growth of above 5.4 per cent. Any notable growth in the economy is reflected in the real estate sector in a direct proportion. Hence it is believed that this anticipated growth in the Indian economy in the coming years will lend an unprecedented fillip to the real estate sector in India. Though the recession has had an adverse effect in the economy and the real estate sector as well, it has got a positive dimension also. The decline in property prices due to the recession has catalyzed a renewed interest in residential properties in the middle income group.

As the real estate sector has acquired a new vigor and momentum, this is the best time to buy property in India. Increased interest in the middle-income-level residential sector has alerted major construction companies in India and they are actively engaged in the development of several housing projects across India. The revised pay-scale of Central government employees and the better paying private sector have helped in evolving a wider and growing market in the middle-income-level residential sector in India. NRI investment along with customer-oriented planning of the infrastructure development companies and the competition of commercial banks for getting housing loan business have further enhanced this growth momentum.