Amit Goenka tells Moneycontrol that the year 2022 is a good time to buy a house, especially a large-sized 2BHK apartment as it is appreciates faster. He is also of the view that plotted developments and buying land makes sense as several infrastructure projects are being announced. For passive investors, REITS and real estate stocks bode well. After three waves of COVID-19, both construction timelines and construction finance are under strain, especially for small developers. But capital is available for the right developer, the right project and the right location, he says.
His advice to homebuyers is to do their due diligence with regard to approvals and availability of construction finance with the developer to complete the project they are planning to invest in. He also tells listeners that there is a healthy flow of foreign funds for housing projects and that there has been a shift in the allocation of funds for the commercial and housing segments with majority capital of up to even 80% being earmarked for housing projects.
He is also of the view that serious investors can consider investing in stressed asset funds as several global players have picked up a basket of such ‘viable’ assets. Going forward, the market requires a capital pool such as a bad asset fund for stuck real estate projects that looks into the social impact on homebuyers with less focus on profits and returns, he signs off.
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