Over the years, savvy investors have recognised the immense potential and stability that the Indian real estate market offers. The economy appears to be in good shape, with recent increases in business investment.
Demand for residential real estate has continued due to higher rental yields and increasing property values, which have increased the appeal of investing in real estate properties.
The sector has experienced substantial growth and demand due to factors such as elevated earning potential, optimistic consumers and their evolving lifestyles, and a growing base of these consumers.
The Indian real estate market is thriving and has become a part of many successful investment portfolios because of its high return on investment (ROI) value. As per a report, 77% of the total assets of an average Indian household is real estate. Therefore, if you want to grow your wealth, you too should consider a real estate investment in India.
How Real Estate Can Be a Profitable Investment Option?
Real estate investment in India has long been considered a reliable and potentially lucrative investment option. Here are the top reasons for it:
Safety and Stability
Real estate is a less risky investment option than stock markets and cryptocurrency. In uncertain conditions such as pandemics, inflation woes, and recession, stocks and bitcoin are too volatile investment avenues.
Real estate, on the other hand, has grown steadily over the last few decades. When it comes to real estate, the sector has been witnessing a growth in the last few years because of the implementation of RERA, reduced home loan interest rates, etc.
On the other hand, the interest rates on savings accounts in banks are considerably low, especially when compared to the rising inflation.
Investors can park their surplus funds by investing in a property as it faces less fluctuations and is not easy to steal.
While short-term market fluctuations can occur, property investment in India generally exhibits long-term appreciation. Over an extended period, property values tend to increase, providing investors with a reliable avenue for wealth accumulation. This long-term appreciation contributes to the safety and sustainability of real estate as an investment choice.
The Indian Government has rolled out several initiatives to boost the real estate sector, making it more attractive for investors. Schemes such as Pradhan Mantri Awas Yojana (PMAY) and the implementation of Real Estate Regulatory Authority (RERA) have not only increased transparency but also instilled confidence among investors.
Additionally, tax benefits and subsidies offered by the government further sweeten the deal, making real estate investment a compelling option.
Crowdfunding and Real Estate Platforms
The advent of crowdfunding and online real estate platforms has democratised access to real estate investment. Investors can participate in property projects with smaller capital contributions, allowing for greater diversification and access to a broader range of opportunities.
Home loans contribute to tax savings. First-time homebuyers can save up to ₹1.5 lakhs on the principal amount under Section 80C, and up to ₹2 lakhs on the interest payable under Section 24. These tax savings can help them lower their investment cost and make the investment a lot more affordable.
Tips for Beginners Investing in Real Estate in India
Research and Due-Diligence
Before diving into real estate and opting for real estate investment returns, conduct thorough research on the market trends, property values, and upcoming developments in the chosen location. This will help in making informed decisions and maximising the investment.
Diversify your Portfolio
Consider Diversifying the real estate portfolio by investing in different types of properties, such as residential, commercial, or rental properties. Diversification can help manage risk and enhance overall returns.
Real estate investment ROI often yields better returns over the long term. Have a patient and strategic approach, considering the property’s potential for appreciation and rental income in the future.
Stay Informed about Market Trends
Stay updated on market trends, economic indicators, and government policies that may impact the real estate sector. Being informed allows beginners to adapt their investment strategy accordingly.
Evaluate Location Potential
Choose locations with high growth potential. Urbanisation, infrastructure development, and proximity to employment hubs can significantly impact the value appreciation of a property.
Network and Seek Professional Advice
Build a network within the real estate industry and seek advice from professionals, such as real estate agents, financial advisors, or legal experts. Their insights can prove invaluable in making sound investment decisions.
Negotiation skills are essential in real estate transactions. Be prepared to negotiate the purchase price, payment terms and other contractual details. A well negotiated deal can significantly impact an investor’s overall returns.
To Sum it Up
The Indian real estate market is booming and being a part of its growth can shower favourable returns in the future. So, investors can ride this tide to secure their future, live a luxurious life, and leave a legacy behind for loved ones.
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Frequently Asked Questions
Is real estate a good investment in India?
Real estate investing in India continues to be the most secure choice despite the epidemic. This is mostly due to the consistent rate of returns and the fact that housing loans qualify for a tax exemption.
Is investing in Indian real estate worth it?
Real estate investment in India has a lower volatility quotient than other business investment options like equities and mutual funds. It remains one of the safest investment alternatives in India because it is a tangible asset.
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