BUSINESS

Rediff.com » Business

Real estate better than stockmarket!
Source: PTI
November 25, 2004 07:07 IST

The prospects of returns on investment in residential properties and office rentals is brighter than that in stock markets due to low risk factor, a real estate expert said.

"If an investor is looking for a low risk and low return option, then he can opt for residential segment that gives an annual 5-6 per cent return," Managing Director of C B Richard Ellis Anshuman Magazine said at a session organised by Young FICCI Ladies Organisation on 'Smart Investments, Smarter Returns.'

Investment in real estate is now looked at as a lucrative option as against uncertainties and risks involved in the stock market, he said, adding commercial real estate market for office space gives 9-12 per cent return.

On the rise in property price in and around the capital, he said: "This is primarily due to high level of demand and low level of supply."

He, however, predicted that price for commercial retail space would come down in a year as nearly 200 malls were nearing completion.

Magazine, who heads the global real estate consulting firm's South Asia operations, said foreign investment in real estate sector has picked up during the current year.

"The current indications point to more FDI inflow in real estate sector next year," he added.

Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
© 2024 Rediff.com