Real estate investing is a common feature of the Indian economy. Indians typically purchase property with the intent of investing or renting it out. Initially, developers and brokers believed that this trend was solely due to working from home (WFH) and that it would fade once people returned to the office, but it is still a force to be reckoned with.
Millennials are not only a significant market driver due to the sudden demand for housing; they are also in their prime “buying years,” are invariably well-established in their jobs, and have easy access to home loans. In 2020, millennials will account for more than half of all home purchases. In short, this is a significant demographic, and their needs are now directing the entire housing market.
The pandemic was a watershed moment. The lockdowns and general concern about the safety of not only one’s health but also one’s investments prompted millennials to turn to residential real estate in unprecedented numbers.
Let us look at some of the major factors that prompted many Indians to invest in real estate.
Work-from-home
Property buyers are looking for plots to build homes that are suitable for working from home. Furthermore, most Indians invested in options that matched their lifestyle, such as open green spaces with wellness and health amenities, as well as good connectivity and convenience. Investments outside of the city have done well because they are away from the city’s hustle and bustle.
Tangible Asset
Plots and flats, for example, are tangible in nature and will not change over time. They are non-volatile, which means they will remain the same for years if left alone, whereas the stock market is volatile and will change overnight. This sense of security is causing many Indians to invest in real estate, which will not change overnight.
Good Prices
Most prospective homebuyers value property affordability. A lot of real-estate developers offered good deals on their properties, giving people access to exclusive lucrative deals. This resulted in a seller’s gain as well as an advantage to purchase properties at a very attractive price.
Long-term commitment
Housing is clearly the most secure investment, and millennials will continue to purchase homes. Millennials will also look for the best value propositions that their money can buy, as well as properties with the highest potential for appreciation. The Indian housing sector will become fully aligned with and focused on millennials over the next two to three years.
Low home loan rates
Because of the pandemic outbreak, many state governments have reduced home loan interest rates. This relaxation provided the best opportunity for buyers to make a real estate investment. Lower home loan interest rates expanded the budget and enabled many people to make better choices.
Conclusion
The pandemic was a trying time for everyone, but thinking like an investor can help you make money in the coming days. If you haven’t yet invested in real estate, it’s time to start thinking about the right property and conducting thorough research so that you can get your dream home at an affordable price. Classic Featherlite is a good bet; they provide innovative real-estate projects with long-term value. Their developments include plotted developments, apartments, and villas in strategic locations with high growth potential.
Authored by Suren Goyal, Patrner, RPS Group
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