It’s not just about the Covid pandemic; real estate is regarded as a stable asset class and a preferred investment option, particularly in a volatile market environment. According to the Reserve Bank of India’s House Price Index, which tracks home prices in ten major cities, real estate has returned an average of 11.6 percent per year over the last ten years. This is higher than the 11 percent return offered by the stock market.
Points Of Validation:
Households in India have a strong desire for real estate. According to a July 2017 RBI Household Finance Committee Survey, the average Indian family owns 77 percent of their total assets in real estate. Residential buildings, buildings used for farm and non-farm activities, recreational facility construction, and land are all examples. Since 2014, the Securities and Exchange Board of India (SEBI) has allowed investors to invest in commercial real estate.
It is said that you should invest like the wealthy. In India, the wealthy invest primarily in commercial and residential real estate portfolios. According to UBS, a global bank, about 16% of the assets managed by family offices are invested in real estate globally. According to their most recent annual family office survey, real estate acquisition and management are critical for the first and second generations. It isn’t just a phenomenon in India. Investing, according to this column, is solely about equity assets. The remaining asset classes are all about capital preservation.
REITs, or real estate investment trusts, are a new type of real estate investment. These are stock exchange-traded units that look like mutual funds. REITs invest in real estate assets that generate rental income, such as shopping malls, office buildings, and apartment buildings.
Investing in the real estate sector in the next two years, according to real estate experts, is a big yes. The year 2021 is thought to have tremendous potential for both the residential and commercial real estate industries. Co-ed office space has grown in popularity in most cities in recent years, with IT/ITeS companies accounting for the majority of the demand.
Why Is India’s Real Estate Investment the Most Reliable?
In India, real estate investors have a number of distinct advantages:
With the rise of bank scams, keeping all of your money in a bank is no longer a safe bet.
It is possible to steal gold. As a result, it is not only a risky investment, but it also puts the lives of gold owners in jeopardy by making them vulnerable to loot and attack.
The stock market is similarly unpredictably volatile. Stock value growth can be slow and time-consuming, and it is highly susceptible to market risks.
Investing in startups is also a risky proposition, as 90 percent of startups fail, according to research. If you want to multiply your money, investing in startups is not the best option. The answer is real estate investment for entrepreneurs.
As a result, real estate investment is by far the best option for securing your future, growing your wealth, and safeguarding your hard-earned money.
Home Loan Rates That Are Beneficial:
Residential property prices in India have mostly remained stable over the last 5-6 years, putting them within reach of customers. The current market conditions are favorable for home purchases because interest rates on home loans are at an all-time low. The reduction in home loan interest rates following COVID has become a major motivator for end-users to purchase a home. Furthermore, the RBI recently announced a reduction in the REPO rate, making home loans even more affordable. This is a positive step because more investments will help the sector grow and generate more cash flow. The Indian rupee is currently depreciating against other currencies in the current situation.
The Indian real estate market is one of the economy’s mainstays, and it is the country’s second-largest employer after agriculture. As many as 220 allied sectors are deeply intertwined with the sector. The sector currently accounts for nearly 9% of the economy and is expected to grow to nearly 16% by 2025 if all reform measures announced are successfully implemented. In recent decades, the sector has been one of the most significant wealth creators.
If you plan to include real estate in your investment portfolio, now is the time to start visualising and planning for a better future, in my opinion. It’s the perfect time to invest your liquid cash in the most promising investment option in the near future, thanks to brands that are here to redefine real estate and make it the most promising investment option.