THE PREFERRED REAL ESTATE INVESTMENT IRRESPECTIVE OF THE ERA
Age, Era or Period….. Real Estate has always been the best proven asset class and has proved to be a better & reliable investment option offering steady returns as against the highly unpredictable stock market or debt investments with low returns.
Further, the current Covid-19 lockdown situations have eventually made people realize the importance of self-owned houses vis-a-vis a rented accommodation. Even though the majority of transactions in owning a house has involved the financial institutions support in the form of Home Loans, it has still proved to be a better alternative of owning a home due to relaxation in the repayment in the form of moratoriums being announced by RBI and the lowest house loan interest rates during the last decade, which hovers between 6.80% to 8.05%.
With property prices sky-rocketing in the cities and stagnant economic development opportunities, more and more metro residents are looking at Tier-II emerging cities. These cities not only present an affordable alternative to the metros but also have the infrastructure and other factors working in their favour. This paves the way to a boost in the affordable housing segment.
Even the apex national body for the real estate industry NAREDCO depicts affordable housing to continue to dominate the supply and launches across cities, of which, Gurugram leads in affordable housing with more than one-third of the sales in less than Rs.25 Lakhs budget segment. Unsold inventory has been the lowest in last 3 years.
With the the Government focus on affordable homes and various perks to investors in the form of loan interest subsidy and tax holidays will definitely keep the upsurge of the sales of the affordable homes.
References: Media Reports, Press releases, Union Budget 2019-20, NAREDCO
Disclaimer: This information has been collected through secondary research and Area infinity is not responsible for any errors in the same.