At present, investing in real estate requires a sound understanding of the market and the application of a strategic approach. This is especially applicable for investors purchasing property for the sake of investment and not for personal use.
According to Andrew Carnegie, almost 90% of millionaires have acquired their wealth and money by investing their money in real estate. Experts too agree with the fact that true profit can be acquired by developing a catalyst mentality. The real estate sector calls for precision and acute understanding of the highs and lows of the industry and only then can one make the correct choices.
In terms of the economy, it has been a challenging year for everyone as the pandemic has affected every sector. But experts also estimated great traction in the real estate sector as it will remain ahead in the game financially in comparison to the other sectors.
But the common man’s query still remains- how safe is it to invest in real estate?
According to financial experts, there are some factors that can help gain a better understanding of the real estate sector in terms of profitable investment.
Demand and supply
The real estate market has recorded a sharp increase in demand in the past two decades as more people have migrated to metro cities for jobs. This has created favourable investment opportunities. People have become interested in investing their money in small flats that serve a dual purpose- living, and investment. Hence, this trend is to continue for a couple of years till 2025, making it a lucrative market for many market investors. As the number of defaulters is also high, it is an amazing opportunity for genuine investors and market players to create a scope for themselves and thereby attract customers with their upcoming projects. Therefore, this is the perfect time for you as an investor to make the move and invest in luxury flats in Chennai or a low budget plot in Mannivakkam.
The existing gap between buying and renting
Buyers can be categorised as those who are end-users of a property or those who buy property to simply generate revenue and yield profit. Hence, before considering an investment in real estate, you need to conduct some research and analyze your purpose of investment. End-users of property tend to choose luxury flats in Chennai that are equipped with modern amenities. On the other hand, if you invest for the purpose of renting it out, you might want to go for less expensive options and later maximize your profit.
Investing in modern technology
It is no news that modern technology has been taking over our lives. The picture is not different when it comes to the real estate industry. To ensure that you generate revenue from your investment in the real estate market, investing in the right kind of technology is crucial. There are so many options available to investors for simple functions like collecting rent from tenants and maintaining communication between both parties. This makes the work easier and more efficient.
Smaller markets and lesser risks
According to expert opinion, the risk involved in investing in real estate is significantly lesser when the market is small. The market giants would not always want to invest in smaller towns and cities. This opens up an immense opportunity for small scale investors to generate revenue. Hence, make your choice of investing wisely. If you are planning to expand your business, luxury flats in Chennai would be a great option. Based on the nature of your project, investing in commercial land for sale in Mannivakkam would also generate revenues for investors.
This is a time when the real estate market has witnessed a terrific bounce back given the condition of the market in 2020. Once again, Indians have realised the importance of investment in real estate and also of owning a home. The record-low home loan interest rates and cuts in stamp duties have also facilitated a great amount of investment in the real estate industry.
The current scenario- is investing in real estate still profitable?
Irrespective of your choice of investment which could range from luxury flats in Chennai to smaller residential spaces in suburbs, it is a good time to invest in the real estate sector. Experts are highly optimistic when it comes to the future of the real estate sector. The next few years have a lot in store for all kinds of projects- residential and commercial. Keeping in mind the recent development and trend of co-ed spaces for IT firms in the metro cities, the demand is only to increase. According to research and expert opinion, investment in the real estate market will gain further traction for investors as well as developers once the government takes quicker steps. There are multiple corrective measures that require implementation for both the housing and urban sector. Until this need is met, the demand won’t reach its optimal level.
To Sum up,
As co-living is gaining importance in India, it will continue to act as a great catalyst in the cities like NCR, Pune, and Bangalore in the form of rental spaces. With great financial discipline, accountability, responsibility, and transparency in the market, the future of investment in the real estate market is bright and promising.
Hence, if you are looking for opportunities to include real estate in your investment portfolio, this is the correct time to start planning. You need to nurture all your liquid assets and cash for the biggest potential investment with the help of brands that have made history in the real estate sector.
