Chat Transcript

30 Apr - 10:00 hrs

Shveta Jain | Director - Residential Services, Cushman & Wakefield

Is the real estate boom over?

Chat Transcript

guest: WHICH IS THE BEST PLACE FOR INVESTMENT IN DELHI WHERE WE CAN GET GOOD RETURN AND SECONDLY WHICH IS THE CHEAPEST AND GOOD AREA FOR BUYING HOME FOR RESIDENTIAL PURPOSE FROM FUTURE PROSPECTIVE.

Shveta Jain: The best place in Delhi will be the emerging corridors which have the future potential of infrasturcture development and form a part of the master plan 2021 and thus growth prospects remain certain. Cheapest and good area is very relative and has to be seen in view of the city you want to be in and the budget you have in mind. Said this, there are some interesting new emerging pockets in NCR which can be considered for a small ticket size investment namely Noida Extension and the new Sohna Sector in Gurgaon.

guest: Dear Ms. Jain, What is the future of big shopping malls in Tier - II cities especially like Lucknow in UP, a state which is not that much open to MNC`s. Anuj Jain, Jakarta

Shveta Jain: Retail over all in India has not been a very bright story for last 4-5 years. There hasbeen downward pressure on rentals and vacancy levels have been high. Most retailers have been opting for profit sharing models, thus not posing the best opportuniy for investors. It is best to keep away from retail investment unless return expectations are conservative and one is willing to have a long term horizon for appreciation.

gopi15225: Is the real estate prices reached it

Shveta Jain: It is very difficult to judge the market at any given point in time but yes, the markets do look over heated in some cities and micro markets. The over all sentiments are not that bullish as about eight months ago.

guest: i want to buy a home in mumbai,i am going to retire in 4 years.should i buy now or wait for the prices to fall as everyone is anticipating??

Shveta Jain: Mumbai as a city has never ever really seen a major correction. If the objective of your purchase is end use and should there even be a minor rationalisation of prices, it will still be advisable to buy the property as and when it provides feasibility.

rajsmart80: madam good morning. When real estate across India, will get affordable (affordable not by borrowing 80% loan money). In other words, when it will crash like gold?

Shveta Jain: The real estate price in India will not witness a crash since here are various which have supported the real estste grown in this country. The primary factor being he population size and the need for housing. Currently there is a slight mis match between the supply and demand affordability and so we will see a rationalisation of prices in certain micro markets ans location. However, this may not be the case across the country.

suneetvarma: wats your view buying a independent house in bangalore. Which places of bagalore do u sugeest?

Shveta Jain: Bangalore a city has witnessed both high and low rise developments. For a single home buy you can opt for either a house that is being developed by BDA or else a villa/plot can be opted for in the gated developmets either towards Whitefield or North Bangalore, depending on the budget.

guest: Can I invest in Noida Sec 74 -78 ? Which projects would you recommend?

Shveta Jain: Yes you can invest in the above sectors in Noida. There are quite a few developments by various developers which can be considered. Some good developers such as Mahagun, Supertech are leading the bad wagon and their developments depending on the stage of construction can be explored for investment.

guest: Which place in Chennai is best for investment?

Shveta Jain: OMR, GST road and Porur can be considered for investment. Many local and leading developers have taken position on these stretches and one can find an investment options starting at RS. 30 Lacs going upto Rs. 2 Crore.

guest: Hi, I would like to know your views regarding current real estate bubble- Is it the bubble in making or Bubble near burst

Shveta Jain: In our opinion there is no bubble, yes the markets are undergoing a transition from being speculative to an end user market which will bring in minor corrections in some over heated pockets of different cities. Traditionally real estate in India has always performed and given returns to long term investors and so will be the case in times to come.

guest: HI, I want to buy residential property in baorda, gujarat. Should I wait for this for few years considering current market scenario of stagnation?

Shveta Jain: You can look at Baroda to invest provided you have long term horizon in mind as some of the tier 3 cities are yet to mature from a demand perpective and therefore it will be best to sit on the investment for a minimum of 5-7 years to see a tangible growth.

guest: Hi my son is staying in usa on h1b visa if he want to buy property in mumbai will he get home loan from indian bank

Shveta Jain: Yes he can be eligible for a loan. You can contact HSBC or HDFC for more details.

blankswan: What about the real estate prices in Bangalore? There seems to be a supply gap here. Do you think prices in Bangalore will correct in the coming years?

Shveta Jain: Bangalore is a bit steep on supply and as a market is more driven by end consumer however, this characteristic of Bangalore has also provided stability to the market which in imes to come will only work in favor of Bangalore. We do not foresee a corection in prices as the capital appreciation has been steady and does not provide much scope for correction unlike some other cities in India.

guest: I would like to buy a house in my mother`s name (She is a housewife. Can i make payments on behalf of her without being treated as Co-owner. Is it possible?

Shveta Jain: This clarity should be sought by a lawyer. However , in our opinion, you can make payments on behalf of your mother with the ownership being alone in her name.

moderator: This chat has now ended. Thank you Ms Shveta for sharing your views, and thank you viewers for your participation.

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