Why Do People Prefer to Invest in India’s Real Estate Market?
The real estate sector is one of the attractive sectors globally. If we look from the perspective of India, it is one of the pillars of the country’s economy with the second highest employment generator sector after agriculture.
There are as many as 220 related industries in the industry. The sector currently contributes over 7% to the economy and is expected to increase to 13% by 2025 if the reform ideas proposed are correctly implemented. The business has evolved into one of the most crucial cash creators in recent decades.
Real Estate Investment in India is a wise choice
Everybody wants to secure their future. There are many options where people tend to invest their money, but if we look at all pros and cons, real estate is by far one of the best investment options presented, giving the option of low risk and high investment.
It is all the more attractive for real estate investors in India in the post-Covid-19 climate, with international investors eager to relocate their investment from China to India. People migrate to new cities, more jobs, more influx, and more individuals keen to buy properties. As a result of increased demand, real estate prices will rise. Many arguments prove that real estate investment in India is a good choice.
- Real estate investment can help you get wealthy quickly because property values can rise at exponential rates. When you look at the well-to-do, you’ll see that the affluent are usually the ones that inherited a large amount of property. After urbanization, many regular individuals sold their fields and property and became wealthy suddenly.
- For earning individuals, investing in real estate in India might result in significant tax savings. If you take out a home loan, you may be eligible for an IT refund on the annual interest paid, a portion of the principal loan amount, stamp duty and registration fees, and other additional deductions under Section 24, Section 80C, section 80EE, and other similar provisions.
- Previously, real estate investing did not involve the same dangers as bank deposits or stock markets. There used to be a worry of land usurpers occupying the sole property or unauthorized persons falsely selling your property.
- Why invest in Real Estate now?
With the onset of different waves of coronavirus, one might be thinking that the market is down and investing in real estate now is not a good option. But the case is not actual. The recently reduced cement costs, together with the discounts and rebates associated with Covid-affected markets, can assist one in obtaining property at a lesser rate.
- Journey ahead
The Securities and Exchange Board of India (SEBI) has approved the Real Estate Investment Trust (REIT) platform, allowing all types of investors to participate in the Indian real estate market. In the following years, it will offer a market potential worth Rs. 1.25 trillion (US$ 19.65 billion) in India. The transition from family-owned to professionally managed firms has been the most noticeable change. To address the increased need to manage various projects across cities, real estate developers invest in centralized methods for sourcing materials, organizing the workforce, and recruiting experienced professionals in project management, architecture, and engineering.
Increased transparency is being encouraged by the growing flow of FDI into Indian real estate. Developers have updated their accounting and management systems to meet due diligence criteria to seek investment. With an US$ 8 billion capital injection by FY22, Indian real estate is likely to attract a significant amount of FDI in the next two years.