REASONS TO INVEST IN THE INDIAN REAL ESTATE SECTOR IN 2021
The real estate sector is one of the main pillars of the Indian economy. It is the country’s second-largest employer after agriculture and is interlinked to as many as 250 allied sectors. The real estate sector currently contributes for over 7% of the economy and is expected to grow to nearly 13% by 2025. The Indian real estate market thus has the potential to become a major wealth creator in the next decade.
When it comes to investing, Indians have traditionally relied on two tried and tested methods, gold and real estate. These two systems of investment, have endured the test of time and still remain a popular choice among the general public. Investing in gold provides affordability and assured returns while reselling. Because of the higher long-term returns, real estate is considered a rock-solid investment.
According to Niti Aayog Vice-Chairman Rajiv Kumar, the Indian real estate market will grow from $120 billion to $650 billion by 2040. The Indian real estate sector made rapid strides in the past few years with Government structural reforms such as RERA, GST and added liquidity in the banking system before Covid-19 hit the Indian shores. With the imposition of national Lockdowns and migration of labour force, construction sites were left abandoned and developers had unsold inventory piling up. To provide aid to the real estate players, the state governments across the country implemented revision in ready reckoner (RR) rates, slash in stamp duty, RBI’s moratorium relief for home loans and lower interest rates. The combined effort of the government and developers have resulted in a recovering real estate sector.
Moving forward, if real estate companies blend the best of Indian culture with global facility and technologies in their future projects, there will be a better scope for both developers to construct and customers to invest in.
The Indian real estate sector, has proved to be durable in the face of adversity and societal changes, time and time again. Regardless of whether an economic slowdown or a global pandemic, the returns for homeowners have remained more or less steady. The moment has never been more favourable for homeowners looking to buy a nest of their own.
4 REASONS TO INVEST IN THE INDIAN REAL ESTATE SECTOR:
- Robust Demand: The pandemic has instilled the importance of owning a home. Today, increasing incomes, urbanization and economic growth are boosting demand for residential and commercial real estate, leading to real estate now becoming a preferred asset class for investments.
- Increasing Investment: Private investments in the sector have surged as a result of increased transparency and returns. The Smart City Project’s objective is to locate and build 100 smart cities across India to boost economic development.
- Policy Support: The Indian government, in collaboration with the State Governments, has taken a number of steps to promote the sector’s development. One such project is the Pradhan Mantri Awas Yojana (PMAY), which aims to meet the ever-increasing housing demand in urban areas. The Government of India intends to build 20 million (2 crore) homes in India’s urban areas under the Housing for All by 2022 scheme. Real Estate Regulatory Authority (RERA) has been established by the government, giving homebuyers as well as developers the platform to voice their concerns.
- Attractive Opportunities: Affordable housing, plotted development and holiday homes are all rising rapidly in India, opening up new opportunities for investors from around the world.
4 REASONS TO INVEST IN THE BANGALORE REAL ESTATE MARKET:
- Silicon Valley of India: Bangalore is home to a number of IT parks that attract ambitious and talented individuals from all across the country. In addition, numerous large MNCs and start-ups have emerged in this metropolitan city too. As a result, the construction of high-end, extravagant residential projects as well as affordable projects has increased.
- Tax Benefits: Individuals can claim tax deductions on home loans against investment. Working professionals who desire to buy their ideal home in the city will benefit greatly from this. Another fascinating point is that while rent will always rise over time, your monthly loan payments will remain stable. When compared to stocks, bonds, and mutual funds, the risks involved with real estate investment are far lesser.
- Great Returns on Investment: MNCs, high-profile media firms, and other working sectors are emerging in areas like Hebbal, Yelahanka, and Devanahalli. As a result, these areas feature a plethora of luxurious apartments and beautiful villas, making them an excellent investment opportunity in Bangalore.
- Steady Growth of Real Estate Market: Bangalore’s real estate market has managed to remain steady while creating significant long-term gains for homeowners. In terms of global trade and local start-ups, the city continues to flourish and grow. As a result, one considering to safeguard their future with a real estate investment will never be disappointed.
In India, real estate is the safest and most reliable investment option when compared to any other type of investments, it yields excellent returns. Over the years, Bangalore has been luring millions of young individuals with its attractive job prospects and innovative career options. Furthermore, the pleasant temperature and numerous recreational options make this city an excellent choice for settling down. Hence, purchasing property is a long-term investment that will benefit you, your children, and the future generations.