Real Estate-Most preferred investment option
Real estate investment is a growing trend as it promises to reap good returns. In India, the average family holds 77 per cent of its total assets in real estate. These include residential buildings, land used for farm and non-farm activities, construction for recreational facilities and plots.
Apart from the long term heavy return guaranteed in real estate investment, people are also making it a source of their second income by renting their extra property. “You can invest in the residential real estate by adopting a 'value investing' strategy in ready to move projects. Real estate investors can make good money through rental income, appreciation, and profits generated by business activities that depend on the property.The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.” says Mr. Vijay Dixit, Chairman and Managing Director, Senior Builders Ltd.
The urbanization growth is likely to reach 50.3% by 2050 as a result of development in India, which will further increase the profit margin in the residential sector. So, investing here is definitely a good option.
As far as commercial real estate is concerned, the rental value in retail space has been on rise in metros over time except for the past year when the unprecedented COVID-19 pandemic disrupted businesses world over. This has altered the workplace fundamentals that present a host of new opportunities for the commercial real estate segment. “Since the start of 2021, the commercial real estate sector is showing signs of recovery. India’s commercial real estate sector continues to attract interest from occupiers and investors looking at medium and long-term horizon” says Mr. Vijay Dixit, CMD, Senior Builders Ltd.
New asset classes, such as student housing, co-living and senior housing are expected to pick up and flexible workspaces may make a strong comeback as more and more organisations look to add ‘flexibility’ to their portfolios. Hence, Real estate remains the most sought-after investment avenue for Indian citizens.
Comments
Post a Comment