Real estate is a well-known appreciating asset, historically offering robust returns to investors. As Franklin D. Roosevelt famously said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” Today, this holds true as real estate remains one of the best assets for investment and wealth preservation.
Investing in property presents an opportunity for a comfortable retirement, extra savings, or an additional income source. With the right timing, developer, and maintenance, stable rental income can be guaranteed. The real estate sector has evolved over the years, with shorter buying and selling cycles due to a younger, educated, and more informed buyer base. The COVID-19 pandemic accelerated these changes, highlighting the importance of spacious and functional homes suitable for remote work.
The pandemic increased the demand for larger living spaces, leading to a 65% surge in sales during the second quarter of 2023 in Pune alone. Notably, luxury properties accounted for 18% of total sales in 2022, compared to just 7% in 2019. India’s growing economy, coupled with development across various sectors, makes it an opportune time to invest in real estate.
Low bank home loan rates and attractive financing options, along with tax benefits on interest payments, make buying a home financially sound. The Real Estate (Regulation and Development) Act (RERA) has further bolstered the sector’s safety and transparency. Rental income from non-occupied properties is on the rise, often covering maintenance costs and part of the EMI.
On a national scale, real estate is the second-largest employer and supports over 250 industries, contributing nearly 6-7% to the country’s GDP. This is projected to grow to approximately US$1 trillion by 2030, contributing 13% to India’s GDP by 2025. The process of selecting a property has become more accessible and convenient, thanks to technology and online resources. Virtual reality allows for property viewing from anywhere in the world.
In today’s buying scenario, developers and channel partners handle property registration and documentation, enhancing the seamless buying experience. Government property records are readily available online and lost registered documents can be easily procured. Bank loans often include property title verification, providing peace of mind to buyers. Property re-development projects further enhance returns, adding to the long-term value of your investment.
The current real estate market offers ease of buying and safety through RERA compliance. Factors like Unified Development Control and Promotion Regulations (UNDCPR), which offer Floor Space Index (FSI), are attractive to new buyers. Developers are maintaining competitive pricing to sustain sales and cash flows. Given rising land prices and input costs, property prices are likely to increase in the future, making it an ideal time to invest in real estate. A property purchased in a promising location with good amenities from a reputable developer is akin to a liquid asset that can be monetized quickly when needed.