Is This a Favourable Time to Invest in Real Estate Stocks
May 27, 2017 Real Estate News
Real estate stock is considered the safest investment area by the potential investors as the real estate market goes through several temporary and cyclic phases. According to the reports from ICRA, the outstanding credit in India for real estate for the year 2016 is estimated to be around Rs 12.5 trillion which is a 19 percent increase as compared to the Rs 10.5 trillion credit of the financial year 2015. However, looking at the slow sales in of past 2-3 years, investors are wondering if this is a good time to buy the real estate stocks?
Recent policies to help revive the real estate market
Over the past few months, the government has introduced many policies that will help in more transparency in the real estate market and reduce the delivery delays by the developers. Even the banks have stepped forward to help revive the real estate market by reducing their interest rates by almost 90 basis points. This will further help in increasing the demand and supply for the coming 3-5 years.
With RERA, GST and Benami Transactions Act, it is expected that there will be more transparency in this sector and people will now be more interested in buying the property. Further price corrections are expected for the property.
Demonetisation to help further
Since demonetisation, there has been a reduction in the black money circulating in the real estate sector which has considerably reduced the prices of the properties. This will enhance and interest more buyers towards the real estate sector. Potential buyers have been waiting for the right time to invest in the market, and this is the good time to buy the property with reduced prices and interest rates. It is also a good time for the developers to clear off their unsold inventories.
What does this mean for the real estate stock buyers?
Real estate is expected to see the growth but at a slow pace. The stock buyers can now invest in the market when the share prices are low and wait for the time for it to reap maximum returns. To be sure of the maximum benefits from the stock, the investors should do a proper background check on the company, its reputation, its expansion in different locations and do a rough calculation of how much they can benefit from it in future. It is better to do your own research in advance to make sure the investment is safe and can reap good benefits in future.
Recent policies to help revive the real estate market
Over the past few months, the government has introduced many policies that will help in more transparency in the real estate market and reduce the delivery delays by the developers. Even the banks have stepped forward to help revive the real estate market by reducing their interest rates by almost 90 basis points. This will further help in increasing the demand and supply for the coming 3-5 years.
With RERA, GST and Benami Transactions Act, it is expected that there will be more transparency in this sector and people will now be more interested in buying the property. Further price corrections are expected for the property.
Demonetisation to help further
Since demonetisation, there has been a reduction in the black money circulating in the real estate sector which has considerably reduced the prices of the properties. This will enhance and interest more buyers towards the real estate sector. Potential buyers have been waiting for the right time to invest in the market, and this is the good time to buy the property with reduced prices and interest rates. It is also a good time for the developers to clear off their unsold inventories.
What does this mean for the real estate stock buyers?
Real estate is expected to see the growth but at a slow pace. The stock buyers can now invest in the market when the share prices are low and wait for the time for it to reap maximum returns. To be sure of the maximum benefits from the stock, the investors should do a proper background check on the company, its reputation, its expansion in different locations and do a rough calculation of how much they can benefit from it in future. It is better to do your own research in advance to make sure the investment is safe and can reap good benefits in future.
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