Real estate is one of the most popular areas of investment among Indian investors. You can earn substantial returns on your investment by renting out your property or selling it after the property’s value appreciates.
Even when various sectors in India were struggling due to the pandemic, the Indian real estate sector stood strong and displayed positive growth. And now, as the effect of the pandemic has significantly reduced, the real estate sector in India is booming, inviting aspiring homeowners as well as investors.
Let’s discuss why post-COVID is the best time to invest in real estate.
The Sector Is Advancing
The real estate sector has been a key driver of the economy for decades. The sector is advancing in the post-COVID era, with realtors developing ready-to-move units. The utilization of technology is also on the rise. Technologies like proptech, BIM, cloud computing, and more are enhancing the real estate sector in the country, creating opportunities for both developers and investors.
Property Prices Are Low
As of June 202, annual property price growth was not more than 5% in major Indian cities. The NCR region witnessed a growth of 2% only. Property prices haven’t appreciated during the pandemic, enabling investors to invest in real estate at lower prices. However, the prices are likely to boost by the end of 2021, and therefore, now is the right time to invest in real estate.
Your Investment Is Safe
The real estate sector is one of the strongest and most reliable markets in the world. Unlike equities that fluctuate significantly based on global trends, real estate markets tend to exhibit an upside momentum in the long run. In fact, recent data shows that the Indian real estate market is projected to reach Rs. 74.37 lakh crore (USD 1 trillion) by 2030.
If you are looking for a safe, long-term investment option that offers gains for years to come, real estate is the best option. You can enjoy appreciation gains and rental revenue for decades and achieve a 10-15% return on your investment.
Support from the Government
Since real estate supports economic growth and public welfare, central and state governments take numerous steps to uplift the sector. Governments also offer tax-saving benefits and other aids for home buyers and real estate investors. Several government schemes, such as the DDA Housing Scheme, PMAY, PMGAY, and RAY, have been implemented to uplift home buyers in the country.
Consumer Behavior is Changing
The pandemic adversely affected the spending power of millennials and aspiring homeowners in metro cities. However, with the remote work culture on the rise, consumers are not willing to compromise on the space, peace, and amenities, despite a decrease in budgets. Many real estate developers realize this pattern as entering the affordable luxury segment. Thus, investors can now invest in luxury homes.
Wrap Up
The real estate market was one of the sectors that stood strong in the COVID-19 pandemic. In the post-pandemic era, the market is set to grow, offering various investment opportunities for real estate investors. If you’re waiting for the right time to invest in real estate, the time is now.