INVESTING IN REAL-ESTATE IN THE PRESENT SCENARIO POST LOCKDOWN

Property prices are at their lowest across most cities over the last three quarters. With stable prices, a raft of offers by various A-listed developers and reduction in repo rates by RBI, it can’t be hotter an opportunity than this. So, strike it…and strike it hard while it’s hot. And you will reap the potential benefits of this investment in the years to come.

The current situation of the pandemic has established the fact that owning an apartment is way better than rented accommodation. With home loan rates at the lowest in almost two decades, this is the best time to buy.

A recent report by a leading realty analysis firm stated that the Developers said they expected sales to normalize in April, following an 80-90% recovery in March. If this bounce back after the lockdown that ended last month in China is an indication of a trend, the Indian real estate market is also likely to witness a similar scenario after attaining normalcy.

Still need more reasons? Please read on.

1. Future Security: The COVID-19 pandemic has aptlt made us realise and understand that uncertainties come like a bolt from the blue. And that a passive income is needed to generate wealth. The highly volatile stock-market and gold prices further reinforces the fact that real estate is a stable asset. With property price corrections happening in several micro-markets and developers announcing attractive deals during and post lockdown, it is the best time to invest in real-estate, taking into account the rental income and price appreciation benefits that one will enjoy in the long term.
2. Traditional assets losing credibility: For times immemorial, Bank fixed deposits had been a valuable asset for Indian families owing to its high degree of liquidity and flexibility which can be transacted even for few thousands and it is easy to liquidate and get the investment back. However, recent market conditions has stolen the sheen away owing to the low level of returns. For serious investors, real estate is now the most viable option as the returns are safe even from economic meltdowns.
3. Reduction in Repo Rates: The recent reduction in repo rates has slashed home loan rates. With cheaper home loan rates, the scales have worked in the favour of home buyers. So, if one is waiting for better home loan rates, nothing can get better than the current situations.
4. Providing regular scaling income to beat inflation: Unlike gold and stocks, real estate is a tangible asset and is not that sensitive to economic fluctuations. Investors prefer real estate because it gives them regular income in the form of rent, safety and security and robust appreciation value. The revenue generated from a real estate property in the form of rent is perennial and perks up with the rate of inflation. Stocks, on the other hand, are extremely volatile assets.

So, if you are gunning for maximum returns in the future, the time is now to invest…and invest in real estate. With virtual reality and 3D tech, home seekers can enjoy an immersive tour of properties from the convenience of their homes or work place; and with digital transactions and signatures, the purchase cycle is smoother than ever. Remember, an investment in real estate and the inherent benefits of creating a legacy for the next generation it brings, is hard to beat by conventional assets.

References: Media Reports, Press releases.

Disclaimer: This information has been collected through secondary research and Area infinity is not responsible for any errors in the same.