Property returns score above markets

The prospects of returns on investment in residential properties and office rentals is brighter than that in stock markets due to the 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 the residential segment that gives an annual 5-6 per cent return," said managing director of C B Rrichard Ellis, Anshuman Magazine at a session organised by the Federation if Indian Chambers of Commerce and Industry (Ficci) ladies organisation on 'smart investments, smarter returns'.

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

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 foreign direct investment inflow into the real estate sector next year," he added.