Tuesday, January 21, 2014

Should you invest in real estate this 2014?

Clague Garden Estate in Tsuen Wan
When it comes to the real estate market, it is a known fact that the year 2013 was an extremely disappointing one. The performance by this sector did nothing to build up spirits of people investing in real estate and only really dampened them. Be it any sector, residential or commercial and even properties for retail purposes, there was absolutely no silver lining whatsoever. 

However, a new year has begun and investors are hopeful that the situation may take a different route and this year would be favourable for investing in real estate and buy flats Andheri. Ideally, experts are of the opinion that the latter half of 2014 will be a more beneficial period when it comes to investing in real estate. 

This is mainly due to the fact that the general elections will have been conducted and the situation may get more under control, thus helping the real estate sector in the bargain. Given below are some pieces of information offered by professionals and experts belonging to real estate so as to guide you in terms of real estate investment.

1.) Investing in commercial property:


When it comes to the commercial real estate sector, it is a known fact that 2013 was the most unfortunate year for this sector as it suffered most among its residential and retail counterparts. The owners of this real estate had to essentially suspend the activities wherein they were to lease the property simply because the market was way too uncertain and there was an obvious hurdle of the sales suddenly slowing down to a halt. 

To put it simply, the earnings made by a person as an individual and that by the entire corporate sector are essentially the deciding factors this year. Besides, the numbers of banks that wish to begin offering their services also affect the rate of commercial properties.

In 2014, the experts predict a growth in the supply rate and therefore, the rate of vacancy that was quite low in the past year is likely to increase this 2014 and therefore, the future of commercial real estate in 2014 looks bright, considering the fact that there are tax breaks being permitted by the Government when it comes to real estate investment trusts. 

2.) Investing in residential real estate:


In the beginning of the year 2013, the major metropolitan cities like Mumbai and Delhi NCR as also Pune suffered immensely when it came to real estate. The macroeconomy in 2013 was highly disappointing and the effect was visible on the residential real estate sector. 

The rupee continued to disappoint with a below average rate and there was no rise in the income level whatsoever, not to mention the fact that inflation was at an all time high. Therefore, individuals had to think twice before investing in real estate and they let the economic conditions take the better of them.

The general elections are likely to be the main reason why individuals would refrain from buying residential real estate or investing in the same in the first half of the New Year, 2014. While the prices of residential real estate are estimated to increase, the completion of the general election is likely to see a few individuals beginning to invest, following which a handful of other individuals are likely to follow suit. 

There are several residential real estate buildings that have merely been built but since the interest rates are quite high in first 6 months of 2014, they are likely to see the light of the day in the second half when the interest rates will dwindle. Therefore, if you wish to buy flats Andheri this 2014, you must consider waiting it out for the initial 6 months.

Author’s bio:

Margaret Clint is a real estate analyst and has been in this profession for over 12 years. She is known to offer advice when individuals wish to buy flats Andheri. She has a professional background in marketing management and worked as a real estate agent in the initial years of her career.


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