Is Real Estate a Good Investment?

Is Real Estate a Good Investment?

There's an adage that life isn't always sunshine and rainbows. Similarly, not every investment option has a high return and low-risk profile. Finding the proper product becomes a difficult chore as a result. However, there are solutions available where, if money is invested intelligently, individuals might earn larger returns than they would from any typical investment tool. Investment in real estate is one example of such an investment. Many people consider India's real estate market to be one of the best places to invest if they want to make a good profit. Real estate investments, in particular, have traditionally been regarded as a hedge against inflation.

Real estate is now one of the world's most sought-after business sectors. It is crucial in portraying a country's national economic health as well as other indicators like GDP. After agriculture, the real estate sector in India is the second-largest contributor to job creation.

Current Real Estate Scenario in India

Since the liberalization of the economy, real estate investment in India has seen a boom because of the expansion in the prominence of this sector. The rise of the middle class, nuclear families, suburbanization, increased housing needs, and the availability of financing are all important drivers in the expansion of residential and commercial real estate.

Household saving rates in India have risen as a result of greater disposable income. The best method to leverage these funds is to put them into a commodity that will generate wealth in the future. Here are the factors that are influencing the influx of real estate investment in India:

1. Government Policies

Many government efforts, such as NBFCs, PMAY, and the National Urban Housing Fund, have come into play as a result of the shifting economy to assist individuals with their housing needs.

The Pradhan Mantri Awas Yojana is a government of India initiative that aims to provide affordable housing solutions by March 2022. With all of these new macro policies in place, affordable housing has become a realistic aim, increasing the number of people looking for homes to buy. Players like Nilaya Greens are contributing significantly in order to make this aim a reality.

2. Foreign Direct Investment in India

The significance of foreign direct investment in developing countries cannot be overstated. It facilitates the inflow of resources, advances technologically, and accelerates economic progress. The Indian government has acknowledged the necessity for FDI in the country and has liberalized it in the real estate sector, allowing up to 100% investment in specific development projects. Housing, townships, new construction projects, and built-up infrastructure are among these sectors.

Between January and March 2019, private equity and venture capital investments in real estate totalled $1.47 billion US dollars. This is beneficial to buyers since it increases openness and ensures that due diligence requirements are followed.

3. Increase in Demand

The increased demand for residential, commercial, and retail real estate is mostly due to demographic factors such as population growth and urbanization.

According to a new analysis, India is the fastest-growing country in the real estate sector, ahead of Brazil, Russia, and China, with a compound annual growth rate (CAGR) of 5.2 per cent from 2014 to 2018. This means that now is an excellent time to buy property because the number of new, inexpensive homes is increasing.

These are just some of the reasons for answering your question of whether real estate is a good investment in India. Now let us try and observe the advantages of such an investment.

  • Tax Exemptions: In India, real estate tax exemptions are one of the most effective ways to accumulate wealth. It facilitates the reduction of tax liabilities. By investing in real estate, you can take advantage of tax benefits such as Section 24, which allows you to claim exemptions on home loan interest, Section 80 C, which allows you to claim tax benefits on principal repayment, and Depreciation, which allows you to write off a portion of the asset's value, lowering your tax burden.

  • Increasing Value of Investment: The value of real estate assets is expected to rise in the long run, and they will continue to offer significant returns. Part of this is due to India's rising globalization, which has resulted in more alliances and possibilities for people to live there.

  • Good Long-Term Investment: Real estate investing is seen as a safe investment option because it is both a future asset and a commodity that can be used now. In terms of stability, it has been and continues to be a solid long-term investment when compared to stocks and derivatives.

Aside from that, owning a home provides a person with an innate sense of emotional fulfilment and contentment. Even a modest apartment or commercial property can yield a sizable return, either through rental revenue or through reselling after a set length of time with a healthy profit margin. Real estate provides a buyer with security in addition to being a terrific wealth-building method. When it comes to real estate investing, a little due diligence, market study, and advice can go a long way.

With India on track to overtake the United States as the world's second-largest economy by 2030, your real estate investment will not only be safe but also profitable. Real estate is a good investment in 2022, guaranteeing numerous perks and benefits. The real estate market is becoming more inexpensive as a result of tax exemptions, government programs, and foreign direct investment.

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Guided by absolute commitment, customer focus, innovation and professional expertise gained over the years, Nilaya endeavors to emerge as one of the key players in real estate construction and development in India.

The Nilaya Group's mission is to deliver best quality infrastructure in the minimum possible cost to the customer. With this commitment, the group aspires to significantly contribute towards improving the quality of life of its customers, via strengthening and expanding its established position, thus becoming the first choice for existing and prospective clients.

We strive to provide value for money to customer, by timely delivery of quality homes at reasonable prices, through transparent and ethical policies and procedures, as a part of our commitment to the national mission of providing homes to millions of people.