There are times when the growth of the real estate industry has drawn the nervous energy of local or national media expecting a downfall after a period of prolonged growth. There are some serious flaws in the logic behind expecting a burst in the real estate bubble nationally and during any period of prolonged growth, you as a real estate investor should not panic in the expectation that a market fall will ruin your investment.Basically, there are exceptions to every rule and there are times when a very localized market depression (such as the downturn of an area neighborhood) can profoundly affect a real estate investment. Extrapolating things like that into a national concern, however, ignores the fact that there really is no national real estate market.The overall picture of the real estate market that the media uses to describe economic indicators is really made up of thousands of small real estate markets. Any time that a market is spread over that great of an expense, the chances of every tiny market failing at the same time are extremely slim. That is indeed what would be necessary for a national real estate market crash, making such an eventuality extremely unlikely.To call something a “crash” takes an extreme drop off over a short period of time, something that would be difficult to accomplish in any real estate market. Pieces of information like population growth, new construction statistics and other economic measures can forecast a general trend for any real estate market well in advance.Certainly, real estate markets will downturn from time to time, but no downturn happens in such a short period of time so as to trap investment money. Generally speaking, you can always get out if the writing is on the wall and that fact separates real estate markets from something like the stock market that can crash more easily.The nature of real estate investment also provides some insulation behind any kind of dip in the real estate market. For those holding properties over a long period of time as investment opportunities, if a dip does happen in the local real estate market, the long term nature of your investment dictates that you will hold it long enough to see an upturn in the market. Real estate markets rarely stay down for over a decade and for a long term investment, that storm can certainly be weathered.For short term flips, often the atmosphere of the local real estate market will not have time to change by the time you are looking to sell off your investment project. Fixer-upper properties and the like will often take a few months when the arrival of a market depression can take at least that long to show up.Early economic indicators will tell you what the market may be like in a few months time and that is certainly something to look at when getting involved in a short-term investment. Simply put, by the time a market depression could affect your short-term investment, you’ll probably have sold it off.Of course, getting involved in a bad investment will nullify a lot of these positive aspects of long-term and short-term investments, so do not take this advice to mean that any investment will withstand market fluctuations. If you buy an investment property with a less-than-stellar cash flow record, relying on an upturn in the market can leave you waiting for a long enough time so as to drain your funds and bust your investment.When deciding on an investment, you need to understand the fundamental positives and negatives of an investment and when your property is a sound investment to begin with, it will generally withstand the fluctuations of the local market. At the very least, you now know that when national media talks about the real estate market, you can rest assured that the word “crash” is not going to follow.
Real estate market in India has witnessed multi-level growth in the past few years. As per the sources in the industry, the upward graph has no sign of reaching down or even no chance of coming flat for next few more years. A lot of activities that include residential complex development, commercial real estate development, retail space development, etc have driven the Indian real estate market.Apart from metro cities, property prices of small cities in India are rising fast. Owing to tech boom across the country, property in Indian is attracting more investors, most of them from abroad. According to the sources in the realty industry, Indian real estate is rising at 30 per cent per annum.Due to rising property prices, buyers are looking towards investment in two- and three- tier towns where property rates are growing with rapidity. Gurgaon real estate is one of the most demanded properties in India due to its proximity to Delhi and emergence of a large number of national and multinational companies.It would not be unfair to say that properties in NCR are one of the most demanded properties in India. People are purchasing properties in Delhi, Gurgaon, Noida, Faridabad and Greater Noida. Property prices of some areas in Delhi, such as Dwarka, Mayur Vihar, Patparganj, etc are increasing constantly. Real estate prices of Greater Noida are also increasing due to the metro network and upcoming international airport and Commonwealth Games.Mumbai is one of the metro cities in India where property prices are at an all time high. This city is also witnessing an increase of 40 per cent in property prices per annum in and around many of its locations. Due to increasing property prices in the main town, real estate developers and buyers are moving towards more affordable options in the suburbs, including Navi Mumbai, etc. Real estate prices in Chennai are also on increasing trend due to emergence of IT and ITES companies.The IT hub of India, Bengaluru enjoys a high-rate real estate development and to meet the growing demand even the suburbs of Bangalore are being developed by India real estate developers.