As India is on its way to becoming among the top superpowers in the world, many investment gates are available. India has become a hot hub for multinationals with a high percentage of educated youth, rising opportunities, and a booming start-up culture.
As all the big companies are starting to invest in various assets in India, a clear question to answer is: ‘Is Real Estate A Good Investment In India’? And we are going to answer just that in this article.
Also read: US vs India Real Estate Market: Know the Difference
Real Estate Investment in India: A Reliable Investment
We, as Indians love to invest in real estate for ages now. With mediocre salaries and increasing expenses, real estate has always been the go-to option when it comes to investing for a common middle-class man. Apart from being an excellent investment, buying a house or a real estate property has a deep connection with societal status in India.
The Indian real estate market is on a boom and has a huge part to play in investment portfolios for many. As per the data, an average Indian invests up to 77% of their income in real estate as assets. Hence, real estate investment in India has a substantial share in the overall investment sector.
Benefits of Real Estate Investment in India
As per the Ministry of Housing and Urban Affairs data, real estate investment in India’s value by the end of 2023 is estimated to hit the USD 1 Trillion mark. With factors like high return – low risk, employment generation, societal status, etc, buying a property will always be considered the best real estate investment in India.
To answer the question, Is real estate a good investment in India, here are a few answers to help you with the benefits of real estate investment in India:
1. Safe and simple form of investment
If you’re looking for steady growth with low risk, investing in real estate is the way to go. It’s much safer than the stock market, gold, mutual funds, and crypto. Every market fluctuates somewhere in the financial years.
But that’s not the case with real estate investment in India because it’s the only market where the value hardly ever depreciates. Though the returns are not high in a short time, they can give you steady growth on a long-term basis.
2. Tax benefits
If you’re new to investment and thinking, Is real estate a good investment in India? Then you don’t need to guess second. Yes, real estate investment in India is an excellent option for investment. Therefore the government is also helping people to buy their first house.
Under section 80c, new buyers can save up to 1.5 lacks on principal amounts with home loans. And you’ll get up to 2 lakh interest payable under section 24. All those things help new buyers buy their first home from real estate investors on an affordable budget and get some extra benefits from home loan companies.
3. Flexible investment option
If you ever invest in any investment plan, whether it’s stocks, bonds, gold, or mutual funds, you probably know you cannot invest more than your net worth. However, real estate investment in India is free from that criteria. In most cases, lenders ask for only 20 to 30% as their down payment and give 2 to 3 months for full payment.
However, home loans are the cheapest option out there in the credit department. At the same time, if you buy a home for yourself or give out on rent, you’ll get some extra benefit in your home loans.
4. Single Time Investment With Long Term Growth Opportunity
The biggest reason why buying commercial space is the best real estate investment in India is that it is constantly growing. It takes a big part of your savings, but you don’t have to pay anything more for this type of single investment.
Though buildings get depreciated because of the material used in them, land never gets deprecated. If anything, they grow consistently, especially when close to an essential commercial space. Buying a commercial or retail space is the best bet if you want to invest a big lump sum. It is a high-return, low-risk investment.
5. Real Estate Is The Source Of Passive Income
The best advantage of investing in real estate property is its ability to generate passive income. Although it strictly depends on the area where you invest, you can still earn something from anywhere you are from.
Everywhere you’ll find some people ready to rent your building, such as students, workers, and small families. It’s also considered an excellent option while taking loans. Banks love to give loans against property to business owners, students, and housewives.
6. High Potential For Future Growth
India is the future, and it will surpass many other countries in terms of production soon. New businesses and MNCs are flocking to India to set up their businesses. Hence, growing with the best real estate investment in India is wise. As more international companies make their way to India, job opportunities will increase for Indians. Therefore, the demand for rental property, apartments, and hotels increases automatically as people try to buy homes closer to their job location.
7. Speedy Development Of Local Areas
The Indian Government is trying to make the best real estate investment in the Indian market as flexible as possible because they want to attract more and more companies to India. As the new company comes in India the employment and GDP both increase. So the government wants to make this country the best real estate investment in India option for foreign investors.
Conclusion
There is no perfect investment option for everyone. Some people love investing their overall income in a single place, while some prefer monthly investments. Some investment modes give quick results but pose more threats, while some are low risk but have lower returns. So there is always something available for everyone. It’s up to an investor what and where he wants to invest his hard-earned money.
Whether or not you’re sure the best real estate investment in India option is good for you, one cannot deny its long-term consistent benefits.
