In India, 'Roti, Kapda Aur Makaan' (Food, Clothing & Shelter) are said to be basic needs that every individual strives for day in and day out. I did not realise till very recently how basic a need 'Makaan' really is. It is a symbol of a sense of security. It assures you that at the end of the day, you have a place of your own to go to; to rest after a hard day's work and unwind. This weekend I was in the unenviable position of finding a new dwelling for myself, if I did not agree to my landlord's demands, in line with the market conditions. The very thought of looking for a new place again, in a space of 10 months, was depressing. But it did bring out very starkly the feeling of helplessness for not having a residence of your own. I also suddenly realised the pain of those people who do not have an abode to go to at the end of the day. Those who make do with temporary shelters under bridges, inside large pipelines, on the foot paths, etc.
India, by the way, leads the pack of top real estate investment markets in Asia for 2010, according to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and research institute, released in December 2009. The report, which provides an outlook on Asia-Pacific real estate investment and development trends, points out that India, in particular Mumbai and Delhi, are good real estate investment destinations. Residential properties are viewed as more promising than other sectors. While, Mumbai, Delhi and Bengaluru top the pack in the hotel 'buy' prospects as well.
Amazing! This means that in this concrete jungle, that Mumbai has become, there is still more scope to build inanimate towers of bricks and mortar. I have been on the lookout to buy a house for myself for the last few months in Mumbai. The timing hasn't been that great because due to the continued recovery of the investment markets, real estate prices have bounced back to original boom time levels, and in some cases, way above realistic levels. At least way above 'my' realistic levels. Due to this I have let go of some very good opportunities, expecting the prices to come down, as I thought the price rise is temporary and a result of the pent up supply in the system during the recessionary period. It is probably not only me, because I did read reports of actual sales of residential properties coming down over the last few months due to the unrealistic price levels. On the other hand, however, I hear that even at these unrealistic levels there is enough demand. Only yesterday, a builder told me that he had closed bookings in a matter of hours, when he launched another tower in an existing project. Confusion! What to do!?!
In a country like India, I guess, demand will always outstrip supply, as the PwC report indicates. So, have I lost out by exiting from my property in Chennai? Have I lost out on the opportunities of buying some good properties in Mumbai, just because I did not want to take the risk of buying in an inflated market? Maybe, the wise thing to do for me now is to buy at current levels very soon. I hope some interesting options come my way.
By the way, I did have a wonderful conversation with my landlord today which resulted in the resolution of my short term problem. Hence, all is well.
Take care.
No comments:
Post a Comment