It is difficult to determine a correlation between real estate and stock exchange and this behavior will change depending on the economy. The principle that can be followed while performing any research/analysis can include:
- Those few that accumulate capital have to invest it somewhere. And, that pretty much comes down to three choices for those not brave enough to risk their capital on their own/business venture: currency (banks), equities (stock market) or real estate. Thus, capital flows from one to the other.
Continue reading REAL ESTATE OR STOCK MARKET?
One can always find a lot in the news about Indian real estate – both good and bad. The latest one is around price correction across all major markets and how real estate is now not being pitched as an investment asset but actually as product and no more an investment dream. Many others under discussion all the time are – it is the sunrise sector of India boosted by the changing norms, it is the sector which will offer greatest growth and opportunities. There are bad ones as well – you can’t trust any real estate developer, there is always a question around transparency, the sector is unorganized etc. Moreover, the sector has always been considered as an excellent investment option which can offer sky rocketing returns, better than any asset class. And more than that it is an answer to the everlasting and ever-growing demand for housing (the last statement can be challenged with several economic theories, but let’s leave it as is for now). Continue reading Indian real estate as a service industry: Can it stretch that extra mile?