Wait and watch before investing

An international real estate agent Knight Frank predicts that the Indian property boom which lasted for the majority of 2007 is likely to continue into 2008, but it could be tempered by the credit crunch. For the same reason he advising buyers to “wait and watch for a month” before deciding to invest.

The projections which was made by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) during January, the Indian property market is projected to grow at a rate of between 40 to 45 % during 2008.

This follows growth of between 35 to 38 % in the previous two years – largely as a result of massive investment which has poured into the country.

“In certain cities, yes [the boom will continue]. In the centre of towns and cities such as Mumbai and Delhi the boom is continuing, but I do not know what is going to happen with the present situation,” said Jaideep Singh, head of the India desk at Knight Frank.

In further evidence of the market’s strength, a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE), published in February, found India’s booming property sector has attracted foreign investors and figures in the top three property markets.

Following the US and China, India at presents the best opportunity for capital appreciation in the world.

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  1. […] with deflation. As late as 2006, market weakness had pushed prices down four percent, according to Knight Frank, a London-based real estate research company. But previous year prices climbed two percent. That is […]

  2. […] “SEBI is ready with guidelines on real estate mutual funds that could be issued any day. The outer time limit to issue guidelines is fifteen days. This would enable retail investors to access the realty market which has witnessed a boom in the last few years,” T C Nair, whole time member, Sebi said at a conference on real estate mutual funds, organised by industry body Assocham. […]