Most people do not ask for relevant statistics or a comparative analysis of real estate against other asset classes. Nobody denies that hope, faith and belief are our ultimate assets, but investment into assets such as gold, silver, real estate, equity, bonds and mutual funds should be done with the head as well as the heart.
In terms of commercial real estate investment potential, Mumbai, Bangalore and Delhi NCR will continue to be of highest interest to big ticket investors focused on real estate in 2013. We also expect investor-driven demand to remain upbeat in Chennai, Hyderabad and Pune. Mumbai
As has been the case in the past, the larger cities of Mumbai and NCR-Delhi recorded healthy absorption of residential units during 2012, with a 60% contribution to the overall absorption. Chennai and Pune were among the other two cities that increased their share of absorption during 2012 to 26% from the 23% recorded a year ago.
The strategic window of opportunity for office occupiers remains, as the country’s office market is likely to continue favouring tenants in the near term
In order to mitigate most of the investment risk, one should restrict one’s residential property to Tier 1 and select Tier 2 cities. It is also most prudent to invest in properties where the price tag falls between Rs. 2500-5000/sq.ft., since such a price tag provides downside protection against any capital value erosion.