Real Estate In India: Is 2020 A Good Time To Invest?
Is it a smart idea to invest in real estate in India in 2020 and 2021? This is a question that many investors are currently facing. And the answer to this eager question is a big YES! By considering the various real estate trends and government schemes, experts are optimistic about the future of the real estate industry in India and look forward to some positive results. So, if you are looking to invest in real estate in the future, here are some things you should know.
Real Estate Investment
Real estate investing has a different strategic approach than purchasing a property. Here, the property is not purchased for personal use; however you purchase a property to make a profit on it. In most cases, the investor rents out the property or resells it to generate profit from it. Just like all other investments, you need to be aware of the ins and outs of the real estate industry to make smart choices that yield higher returns.
Real Estate Market in 2020
According to CNBC.com, the Indian real estate market saw many highs and lows in 2019. The NBFC crisis resulted in a liquidity squeeze and a slow recovery in sales. Whereas, on the bright side, the successful launch of India’s first Real Estate Investment Trust (REIT) gave scopes to investments while various government initiatives gave much-needed relief to the real estate industry. Housing sales had 4-5% annual growth with over 2.58 Lac homes sold and new housing launches had 18-20% annual growth in 2019.
The year 2020 has great potential for both residential and commercial real estate sectors. In the last few years, co-ed office space and gated societies have gained impressive traction in most cities with major developers contributing to the majority of the demand. Occupational inter-state migration is also driving growth for the commercial sector, which in turn translates into higher residential demand. Ready to move flats in Mohali is a quintessential example of it.
As per the research conducted by Global Real Estate Consultants Knight Frank, the novel concept of co-living is gaining an extensive acceptance in India and this trend is acting as a catalyst for an organized rental market in cities such as Bengaluru, NCR, and Tricity.
Expert’s Advice
Many experts believe that if the government takes more quick corrective measures for the housing and urban infrastructure sector, demand can increase to an exceptional level. So, if you want to add real estate to your investment portfolio, now is the right time to get started.
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