It’s no secret that real estate is a sound investment. Over time, property values tend to rise, giving investors a healthy return on their investment. And when it comes to investing in real estate, India is a great place to do so! This blog post will discuss why real estate investment in India is a good financial decision. So, if you’re thinking about investing in property, read on!
Is Investing in Real Estate a Good Idea?
In India, the real estate sector is one of the fastest-growing industries and is expected to grow at a CAGR (Compound Annual Growth Rate) of 30% over the next decade. This sector is also one of the largest employers in the country, providing direct and indirect employment to more than 50 million people.
The Indian real estate market has been up since 2015 and is expected to continue growing in 2022. The government’s initiatives such as “Make in India”, “Smart Cities Mission”, “Housing for All by 2022” and “Rural Housing Fund” are major drivers of growth in this sector. Rising income levels and changing lifestyles are also fuelling demand for better quality homes and office spaces.
Reasons Why Real Investment is a Good Option
There are various reasons for making property investments in India. Here are some of them:
1. Buyer’s Market
The current market conditions are in favor of buyers. The prices have been slashed down, and the builders are offering a lot of freebies and discounts. So, if you’re planning to invest in real estate, now is the perfect time to do so.
2. Infrastructure Development
The government is investing heavily in infrastructure development, driving up demand for real estate. This results in an appreciation of property values and rental income. So, if you are looking for a long-term investment, real estate is a good option in India.
3. Tax Benefits
Investment in real estate offers several tax benefits. You can avail a deduction of up to Rs one lakh on the interest paid on a home loan under Section 80C of the Income Tax Act. Additionally, if you reinvest the sale earnings in another property within the predetermined time frame, you can receive a capital gains tax exemption.
4. Good Appreciation Potential
Prices of property in India have always shown good appreciation potential. In the last few years, there has been a steady increase in prices. This trend is also expected to continue in the future, making real estate investment a lucrative option.
5. Stable Income
Another reason real estate investment is a good option is that it provides a stable income. Rental yields on residential properties are currently around 12-15%. This provides investors with a regular and steady income stream.
6. Safe Investment Option
Real estate is a physical asset; unlike paper assets, it cannot be destroyed by market forces. This makes it a safe investment option, especially in times of an economic downturn. In addition, since real estate is a tangible asset, it can be used as collateral for loans. This makes it easier to get financing from banks and other financial institutions.
Moreover, real estate provides investors with the opportunity to generate rental income. This can provide a steady stream of income, which can help offset any potential losses from the sale of the property.
The Bottom Line
Real estate is a good investment in India. Rental yields are high, capital appreciation is strong, and many growth opportunities exist. However, it is important to do your research and invest wisely. Risks are involved in any investment, but with proper planning and advice, these can be minimized.
Piramal Realty in Mumbai has some of the highest rental yields in India. They also offer a wide range of property types, from luxury apartments to budget-friendly homes. You can visit their site to learn more about these properties.