Real Estate investments in India have long been considered as a safe haven for people having black money. People in India have for decades placed their unaccounted money into real estate and properties registered under different names.
But since the time PM Modi’s government has taken over at the center and more so post demonetization real estate investments have hit a bad patch for the simple reason that the government is hell bent on unraveling black money. The government has made their agenda clear by introducing the RERA (Real Estate Regulatory Authority) Act where in all real estate development project need to be register with the state regulator in order to advertise or sell their projects in the market.
Though the market conditions are uncertain but it still makes good sense to consider investing in real estate, you might ask why? Well, the first and foremost reason is that now that RERA Act is in place cases of cheating and a false promises by developers are set to be a thing of the past. Secondly, with real market in a subdued mood real estate prices have dropped by 10%-20% in various cities across India. Under RERA, a real estate agent cannot operate in the sale of new projects, or even projects under construction, if he is not registered with RERA.
But the most important factor as to why investing in real estate is still a good idea is because when you buy a piece of property especially a plot the bank interest rates and property prices both are so attractive that if someone stays invested for a period of 3-5 years and beyond there are good returns to be made.
For those with short term vision earning a profit by the way of real estate investment is really a tough task but for those who are willing to wait and have medium to long term horizon there are gains to be made.
Investing in township in Indore or residential projects in Bhopal is usually a huge decision in one’s life. People would place their life time savings when buying a piece of real estate property and therefore one should check all property related documents before even discussing things like prices, project delivery period, amenities etc. However attractive the prices may be if the property documents are incomplete, if the project is not registered with RERA or the project is not approved by banks like SBI, HDFC etc then there is no point considering investing in the property.
So overall there are good opportunities to earn a decent return in real estate, all you need to do is study the location where you want to buy a property and look for ongoing or soon to be launched real estate projects. Meet up with real estate agents that are RERA registered (this you can look up on the state RERA site) and evaluate the properties one by one.