Can Real Estate be counted as one of the safest investments in today’s India?
If there is one thing you must know about investing, it would be to diversify. This has been said and found true by some of the biggest business tycoons in the world. Their reasoning is simple, you need to have different types of risk profiles in your portfolio. And among those various profiles is- Real Estate, one of the most reliable and consistent investment avenues. It is by far one of the safest investments in India and even more so in Bangalore specifically. A fact to back this statement is that Indian Real Estate has seemingly already beaten the second wave of COVID-19. Real Estate V/S The Second Wave in numbers In the first half of this year, Indian Real Estate has observed a 71% growth on the same period last year in terms of new launches, which shot from 60,489 in 2020 to 103,238 in 2021. Similar is the state of homes sold in the said time as 2020’s number of 59,538 increased by 67% and reached 99,416 in 2021. These numbers become all the more significant when you factor in when the spike actually started. That is- right in the middle of the sequence of tragedies of the second wave. How did Real Estate grow in this scenario? There are multiple factors that can be credited for this less anticipated feat by the industry. Here are a few of them- Government- There have been various policies and reforms by the government that have had a major impact on the number of sales. Reduction in repo rates, ready reckoner rates, and stamp duty is among those policies introduced. Developer Offers- To boost sales and recover faster in the competition, developers themselves have brought in a lot of lucrative offers. This has actually been crucial as the interest among people has massively increased. Mindset- The pandemic has actually worked in the favour of real estate in the industry. All the people working from home have either been frustrated by the rental scenario or have observed the need for a bigger place to live now that they see it as more than just a place to sleep or go to rest. Now, they need a place to actually LIVE. This has been by the most prominent of the factors and has affected the number of sales happening in all segments. Future- This is not a sudden spike but a consistent improvement that will keep on growing as the industry is yet to reach the heights of 2019. It is also expected to grow even beyond that. So, if you are someone looking to invest or to diversify your investment portfolio- Real Estate should definitely be on your radar. Because if an industry survives a pandemic with such flying colors, it is one of the safest options you’ll ever get.
