Looking to invest Rs 1.5Cr in real estate. Should I buy standard flats in Noida or look elsewhere?

Question

I have around Rs 1.5Cr ready for a real estate investment.

I am looking at some standard under-construction flats in Greater Noida because they seem affordable.

My goal is capital appreciation over a 10yr horizon.

Is this a good place to park my money or should I look at other asset classes?

Sachin Kabra · Accepted Answer

You must avoid stagnant markets characterized by oversupply like standard flats in Noida or Greater Noida. The current environment is a K-shaped economy where there will be distinct net winners and net losers.

When looking at real estate or any asset class you must identify exactly where bubbles are forming by looking at the volume of asset expansion. Just like the IPO market saw a massive volume expansion of low-quality companies certain real estate markets have too much supply.

Focus on high-quality scarce real estate such as land and premium villas in high-demand areas like South Goa or Dubai. Capital appreciation remains robust in these areas due to limited supply.

Your primary objective should be aggregating high-quality Grade-A assets across the board. If you look at equities a Grade-A equity is a top-tier company capable of growing its earnings and profits by at least 15% in US$ terms.

For commodities stick to the gold standard by holding gold ETFS or Sovereign Gold Bonds. Money simply rotates from overvalued assets to undervalued ones so you must focus on fundamental quality over cheap volume.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.

Looking to invest Rs 1.5Cr in real estate. Should I buy standard flats in Noida or look elsewhere?

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