Owning Property in India: A Self Obsessed Syndrome

The two most discussed words in Indian society are “politics” and “property”, both starting with alphabet ‘P’ being a coincidence. The word Property in India ushers in a whole lot of thoughts and emotions and anybody and everybody is an expert on this subject.  Irrespective of the background of a person, property is one subject in India on which everybody has an opinion and set of advises, one only has to raise the topic. The reason for this is simple, property is one issue which is discussed in all households and families’ year over years; generation after generation; from poor to the middle class and ultra-rich; across religions and society barriers. We as a society are obsessed with property because of our insecurities and uncertainties.  Such is the obsession that you talk of investment and the first option thrown at you is property, despite the fact that it is the most difficult to execute. Let’s look at the pros & cons, as also the reasons for this irresistible passion towards property in India.

There is little doubt that property in India remains the safest investments of all and 99% of the time will not fail you as investor, in the long run. Of course it needs to be done judiciously after having weighed-in all factors. The keyword here is ‘in the long run’, what it implies is that property investment generally should be treated as a long term investment, rather than as a tool for early and quick financial returns.

Property investments are long drawn in terms of the decision making cycle as well as the implementation stage. Accordingly, the liquidation stage also requires patience, perseverance and is generally a time consuming process. This implies that the investments remain frozen for longish time periods with minimal flexibility for liquidity and therefore cannot be relied upon in case of emergencies.

As a family unit or individual one needs to decide the quantum and number of such investments, as managing the property portfolio is time consuming as well as complicated. 

Property investments are also subject to natural calamity risks like floods, hurricanes, earthquakes etc., to an extent that it can lead to loss of the entire investment, which in case of property is substantial.

Owning India property psychologically boosts your social security factor and like any other branded ownership also defines your status; Therefore, till the time as a family or individual you own one, it keeps playing on your mind. It is advisable to initiate investment in property at the earliest and as soon as one steps into a professional career. It leads to forced savings and also provides the longest duration for loan repayments, thus easing out the instalment premiums.

Owning property is definitely one of the important components of an investment portfolio for any individual, however it should not be the only one. One also needs to guard against over-obsession for property ownership, which comes naturally to us Indians.

The Know-How of Luxury Properties in India

Buying property in India is a tough task as there are numerous options available to choose from. From luxury too affordable to mid-segment housing, there is something for every category of buyers. This means that if a person is interested in buying property then they can select one from an array of listings that are under their budget and also according to their status. The luxury segment of India in particular is gaining much attention these days as it is being inspired by the kind of properties being built in foreign countries. Tall buildings, private pools, golf course, gym and swimming facilities are to name a few of them.

What it means for builders?

On the other hand, developers are adding luxury housings in their portfolio in order to add more brand value to their work. This gives them the right kind of exposure that they need to attract number of buyers from different cities and sometimes overseas. Furthermore, in this situation, developers are expected to record higher gains and per-apartment income is much higher as compared to other segments of property.

Therefore, new as well as existing buyers are now planning out their next project that is not only luxurious but also under a buyer’s budget. This way it’s a win-win situation for both of the parties investing their money.

What it means for buyers?

Luxury property in India is divided into many other sub-segments that define an investor’s socio-economic status. Rather than fulfilling any essential necessity, these housings have become a way to define one’s own lifestyle in terms of brand value. People investing their money in luxury housings have made it their primary need and thus, believe in maintaining it throughout.

While many new investors are planning out best ways to capitalize money and make it a profitable deal, buyers from all over the world are still in awe of luxury property in India.

One of the most vital reasons to own luxury housing is its location with ease of access and fabulous view around. Luxury housing does not necessarily mean that it should be extravagant in its features. Buyers get attracted with some amenities such as building material, security arrangements and landscape designs. Whether they are trying to own a property or not, these facilities can surely make them think twice before making a decision.

The Road Ahead

There are many of us who are still skeptical and confused about investing a large chunk of money in luxury property in India. This primarily happens due to the fact that the market keeps fluctuating and it’s difficult to keep a track record of the best option available. This trend can also be linked to the truth that there is definitely an oversupply of properties that is getting difficult to handle. Also, there is a marginal delay in the time of completion of luxury properties, which results in a slow investment process.

The current stage of development of luxury projects in India can be linked to some unsold inventories. In order to make sure that the projects get completed on time, developers have to make sure that they are able to complete projects on time with a rapid speed. This helps them to gain momentum even if there are new developers entering the market.

Policies and Trends Shaping up the Realty Sector in India

The real estate sector plays a vital role in country’s economic development and reforms being used to develop it. The sector being one of the key drivers to the economic growth has garnered much attention since the year 2009. The sector not only generates high level of incomes but also helps people to store their money in the form of in investment. The industry has surely been on a roller coaster since the year 2005. Not only this, the sector witnessed the arrival of several major industry players from all around the world.

The FDI reforms announced by the government have pawed way for much needed regulations to control forgery and mishandling of properties and their prices. In the year 2015, various new laws were also introduced to attract more foreign capital into the realestate sector. By providing a new direction to this sector, new reforms are going to curb down financial crisis on the country.

Through evolving global scenario and Indian policy regimes, one can hope that the real estate gurus are certainly going to re-think and re-implement their strategies. Besides that, a more transparent platform is required in order to make the real estate sector of India far more competitive than what it is now. The year that has gone by has definitely witnessed increased investment activity and increased consumption. This has eventually helped India bounce back in the realty sector with healthy growth rate.

The only hurdle that has been surfacing in the journey of real estate property is untimely inflation. It has always been a major cause of concern for the Indian economy having adverse effects on future investments. It would not be wrong to say that due to rapid pace of urbanization, there is a growth in stability also. India being one of the ripe markets in real estate sector attracts a huge number of investors and developers to make best use of their money.

While risky at one point, realty sector never fails to attract global investors in the Indian market. Major metro cities such as Delhi, Mumbai, Pune and Bangalore are the ones that have uncountable options for buyers. Being an unpredictable market, real estate has now become more reliable with the passage of time and never fails to surprise us.

The government of India introduced the first Real Estate Regulation and Development Bill in 2013. This has helped to improve transparency and increased efficiency in the usually disorganized realty sector. Soon after the government cleared these drafts, real estate turned to the additional source of funding through Private Equity Funds and foreign developers.

To provide a significant growth in the industry, policy re-evaluation and affordable housing has become a vital part. Among many other issues surfacing in the country, the real estate agenda has always been a priority for regulatory bodies. The way things are surfacing in the real estate sector, it is expected that most of the major developers are going to form joint ventures with other local builders. With these inventions, it is rather easy to determine the nature of realestate in India.