In India, there are several statistics that highlight how low appreciation can disrupt the investment value of land, including:
According to a report by Liases Foras, a real estate research firm, the average annual appreciation of residential properties in India between 2011 and 2020 was around 3.2%. This is a relatively low rate of appreciation, which highlights the importance of careful analysis and due diligence when considering land investments in India.
A study by the National Council of Applied Economic Research found that land prices in India have been rising at a much slower rate than construction costs, which has led to a decrease in land values in many parts of the country. This highlights the potential risks associated with investing in land, and the importance of careful analysis of appreciation potential.
According to a report by the Reserve Bank of India, land prices in India are highly correlated with economic growth, and tend to rise rapidly during periods of economic expansion. However, land prices can also be highly volatile, and may experience significant fluctuations during economic downturns or periods of instability.
Overall, these statistics highlight the potential risks associated with low appreciation rates in Indian land investments, and the importance of careful analysis and due diligence when evaluating the investment potential of a particular piece of land. Investors should consider a range of factors, including economic growth, construction costs, and market trends, when evaluating the appreciation potential of a land investment in India.
