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Is Real Estate a Good Investment

Is Real Estate a Good Investment

Real estate is one of the sought business sectors in the world. It helps in the economic growth of the country and other things like GDP. This is the second-largest contributor to employment following agriculture.

Since the liberalization, the country has seen growth in the real estate market. The families like the middle class, nuclear families, suburbanization, rising home needs, and loans are the main factors that help in residential and commercial growth. The right way to invest your savings guarantees wealth creation in the future.

Many government agencies have taken initiatives that have come into play like NBFC’s, PMAY, National Urban Housing Fund, which help people to have housing needs. Other initiatives like Pradhan Mantri Awas Yojana by the government promises housing solutions to most of them by March 2022. With this kind of macro policy, affordable housing is now an achievable goal, meaning more and more people will be looking to buy houses. The tax-saving policies and the slash in stamp duty also came in handy for the new home buyers.

Also, the NRIs are investing in the Indian Real estate market. The Foreign Direct Investment for the deeevelopi9ng nation like our’s cant is undermined. The inflow of resources, technological advancement, and driving economic growth to a higher trajectory. The government has recognized the need for FDI and has also liberalized it for the real estate sector. The government also allows up to 100% of the investment for some sectors like housing, townships, new construction projects, and built-up infrastructure. The private equity and venture capital investments have also amounted up to 1.47 billion US dollars in March 2009. The increased transparency and due diligence standards are now great for the buyers.

Population and urbanization are the key aspects in rising demand for residential, commercial, and retail real estate sectors. India is the leading and fastest country, in fact among the top four within real estate followed by Brazil, Russia, and China with Compound annual growth (CAGR) of 5.2% between 2014 and 2018. This also indicates the stability of the current market and the development of new, affordable, properties in the market is on the rise.

Investing in real estate also gives sth benefits like tax exemptions which make it easier to reduce tax liabilities. According to section 24, one can claim exemptions on interests paid on home loans. Section 80C states, one can claim tax benefits on repayment of the principal amount. The depreciation protects your asset where you can write off a part of the property and reducing the tax burden. In the long run, real estate will boom and the value always appreciates.

India is in the line to become the second-largest economy in the world by 2030, after the US, the real estate sector is the real boon here. Good market research and guidance can pave a long way. It also provides the buyer with security. It grows at a compound rate of interest at 11% and with this kind of growth; real estate is the industry for investment.

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