Indian Real Estate has been one of the high riding sectors since 2002- 2003. After very bad ninetees decade, it has resurrected itself like never before. Infact, in last three to four years, the property market in India has zoomed by more than 300% in few cities. When I bought my first house in 2000 in Pune, India, the housing market was was just starting to show the glimpse of what was in store for future, however what followed over next 5-6 years has been beyond anyone’s expectation and has been a dream run for Indian construction Industry.
But what about the future ? Will it still keep going up the monemtum ? Will it remain constant ? or will it take a U turn ?
These are the million dollar questions for you and me.
My younger cousin called me yesterday from India. His builder had called him up to tell that the township where he had bought the 3 Bedroom flat was near completion and should recieve the possession in a month.
Why did he specifically call me and tell me this ?
It is because I had given him an advice against making the house investment last December. I told him “the property market has moved too high in a short period of time. It may just collapse. It may not be a good time for you to buy. You should see consolidation in property market shortly. Wait for 6 months to a year and you will get much lower rates”
How proud was he that he had made the right decision of buying the house because the real estate market in India is still going strong. Every one knows the success of Biggest real estate IPO in India “DLF”!
What he told me later was even more surprising. Last December, when he bought the flat, he got a rate Rs. 2300/- per sq. ft. (approx $60 psf ). During his recent visit to his apartment, he asked the builder about current rates. He was overjoyed to hear that rates had climbed to Rs. 3600/- per sq.ft. (approx $90 psf).
A huge jump of around 60% over December 06 rates !
I felt like hiding my face for the advice I had given him, it made me look so foolish.
So what advice will you give me, If I decide to book a new apartment in India, specifically Pune ?
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