India Brand Equity Foundation (IBEF) predicts that the real estate market in our country will grow to a behemoth RS.65,000 crores by the year 2040 from approximately RS.20,000 crores post 2020. Indian real estate is one of the fastest growing financial components of the world. But what makes real estate properties a good investment option? Let us find out.
- Risk free investment
Investing in shares and stocks comes with a cocktail of uncertainty. Trading in stocks and its derivatives requires skills to make money out of equity and leverage trades. One wrong move, and your portfolio takes a deep dive. Whereas real estate investment requires you to have some capital that you can invest in buying a piece of land or residential space which promises infrastructural development in the near future. - Near-constant price-points
Real estate price-points have fairly remained constant or have progressed steadily for quite some time, especially when considered with annual inflation rates. Moreover, real-estate has always been a saviour to help overcome the economic slump in the Indian market. This makes real estate one of the safest investment options. - Investment-friendly rental laws
This is one of the key reasons why real estate will always be a good investment option. The rental laws of our country ensure safe and secure renting experience for investors. Investment-friendly rental laws not only ensure capital appreciation of the asset, but it also makes a safe income option. Top real estate builders in cities like Pune and Mumbai have the best properties which are perfect for both investment and renting. - Relaxed Interest rates
Borrowing money to finance a dream home can be challenging for homebuyers. However, Reserve Bank of India (RBI) has ensured linking home loan interest rates with the external benchmarks like the repo rate. Moreover, the option for choosing the loan term also makes financing a real estate purchase much easier, and it also does not impact one’s financial status. A fixed interest rate over a period of 15 to 20 eases financial burden on new homebuyers. The best builders or real estate developers in Pune have tied with banks that offer home loans at competitive interest rates. - Safe long-term investment option
This is one of the major reasons for the ever-booming market of real estate. Indian markets have witnessed some of the major slumps and slowdowns. Since these are a part of a business cycle and the markets turn around, the Gross Domestic Production (GDP) gets higher, enabling better Return of Investment (ROI) in the long run. - Steady income
A large majority of people use real estate properties for a steady cashflow. Statistics suggest that more than 25% real estate properties in Pune have been rented out. This gives a strong incentive to people who want to invest in real estate.
Real estate investment can be a wise option even for new investors. Top real estate builders and properties in Pune offer some of the best options at prime locations of the city for investment and renting. However, it is important to do your research for safer and better long-term returns.