Investment in Real Estate. - "Long Term Bet"

With growing foreign investments in the country's real estates long-term prospects of the sector look brighter, HDFC Chairman Deepak Parekh said recently.
“Long-term prospects of commercial real estate market continue to be positive owing to growing opportunities in sectors like healthcare, hospitality, logistics and education” , there is sufficient interest from foreign investors to take part in the country’s real estate market through private equity and foreign direct investment routes, he added.
In Q1 FY’09, about 20% of FDIs were in the housing and real estate sectors, he said, adding that the IPO market may take some time to recover.
Advising buyers not to sit on the fence, Parekh said: “If you find the right house, go ahead and buy it.”
Interest rates over a 15-year period would inevitably move up and down. “So do not overstretch on a loan and maintain a sufficient buffer" says Mr Deepak Parekh.

But Why Real Estate ?
After looking at this choppy session I say real estate play is a much safer bet.
In fact Unitech Ltd became a multibagger by unlocking its lands value. A person with loads of cash can safely park money in Real Estate. I think investing in smaller cities would be beneficial. Cities such as Sutar , Valsad , Nagpur are some of the places in the western region where returns expected can be higher as they are developing and industrialised cities.
This is a total safe bet as you have some thing called property and you can easily lease it out.
A major draw back is not good liquidity in the sector.

PS. My friend invested Rs 10,000 in a real estate last year and today his net worth is in 7 figures.

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