Is Real Estate A Good Investment-Yes or No?

Real Estate is one of the most booming sectors and investing here is the goal of every individual. Not only this, it plays a crucial role in representing and making up the country’s national economic condition and other parameters such as the GDP.

In India, after agriculture, the real estate sector is the second largest contributor to employment generation.

Various factors have led to the increase of demand for houses for sale such as the emergence of the middle class; nuclear families, suburbanization, growing housing needs and loans that supplement residential and commercial real estate growth.    

Looking at the factors that makes investment in real estate a good one are mentioned below:

Government Policies In India

Housing is a basic need and to aid it further the government is taking various issues in the light of the changing economy, that play an important role such as NBFC’s, PMAY, National Urban Housing Fund.  

The PMAY (Pradhan Mantri Awas Yojana) is a great initiative by the Indian Government that has promised affordable housing to all by March 2022. With all these new policies and initiatives coming in, affordable housing projects has become an attainable goal which means more and more people are looking to buy homes.

Foreign Direct Investment In India

Foreign Direct Investment is very important for developing nations and India is a developing country. This helps in the inflow of resources, technological advancement and drives economic growth to a higher course.

Understanding the need for FDI, the Government of India has liberalized it for the real estate sector also. Now, it has given an allowance for an investment of up to 100% for certain developmental projects. These sectors include housing, townships, new launch projects and built-up infrastructure. This is great for buyers as it has eventually increased transparency. 

Rising Demand

The demand for residential projects, commercial properties and even retail depends mainly on demographics such as population and urbanization. This is an indication that this is the perfect time to buy property as there are many new developments; affordable properties are always on the rise.

What Are The Advantages Of Investing In Real Estate In India?

Tax exemptions

In real estate in India, there are many tax exemptions and it is one of the best ways to attain wealth. It makes it easier to reduce tax liabilities. Various sections help in gaining back rebates mentioned below:

Section 24 – Under this section, one can claim exemptions on the interest paid on home loans.

Section 80 C – You can claim tax benefits on repayment of the principal amount.

Appreciating Asset

In the long run, unlike many other assets, the values of real estate assets are always expected to be on the rise and will remain to be high yielding.

Good Long Term Investment

Real estate investment is subjected to be a safe investment option since it is not just an asset for the future, but also a usable commodity in the present. So, buying a property for sale can never go wrong and is a good long term investment.

Thus, now it totally depends on the buyer to make the final decision after completely understanding the pros and cons of real estate investment.