Should we have Real Estate Investments or Invest in REITs?

PM Modi sahab’s vision to make all First Home owners fulfilled with their wish of owning homes by 2022 would mean that the prices need to be correct. For that to happen, the Investors creating an upsurge in the markets have to go away. For them now SEBI has approved REITs in India, as I have been mentioning in many forums, REITs will be just like Mutual Funds having their Investments in varied Real Estate properties across locations and across types such as Residential, Commercial etc. Hence as an advance measure a lot many B-Schools have already started an MBA in Real Estate Management which means that the future is education in any field else the broker/agent perishes as we must have seen many brokers in Property have perished!!

Investing in REIT can be compared to investing in Gold Bonds. Indians are partial to buying physical gold than in Gold Bonds, implying that having one’s own investment in property will always provide Indians greater satisfaction than mere paper investments. The Indian property market is now almost stabilized and it is right time to buy self – owned houses. While it is human tendency to wait and watch, the bottom of the market cannot be fathomed accurately at the best of times.

At the end of day, REITs are investment instruments and not a means to acquire actual property – which always high on every Indian’s wish – list. A budget that clearly favours purchase decisions for the first time home buyers and is a step closer to Prime Minister’s mission to provide Housing to all by 2022 is in place. 2017 is certainly the year to make home ownership a reality.