Real estate is one of the most globally recognized and prominent sectors. The growth of this sector is mainly because of the growth in demand for residential properties due to the increase in high standards of living amongst the people along with the need for the corporate environment and office space.
Real estate has been considered one of the best sources of passive income traditionally due to the generation of regular rental cash flows.
According to the reports, the real estate market in India is expected to reach a market size of US $ 1 trillion by 2030 from US$120 Billion in 2017 and contribute nearly 13% of the country’s GDP by 2025.
The impact of the coronavirus was such that it brought property transactions to a near-halt last year when the nation went into a complete lockdown between March and June 2020.
Since then, the market has taken several steps towards recovery, and just when it seemed the revival was not far, the country has been struck by a second wave of the coronavirus this time far more fatal. Experts say the recovery of the realty market in India could now prolong until 2022.
India will be the biggest beneficiary for big investors and global companies to come to India. Since China has lost its trust from investors due to rumored conspiracies, there are chances that the investors might shift their focus towards India.
The second wave of COVID-19 would have little effect on the industry because, after the first lockdown stage in April/May 2020, people realized the value of owning a home for themselves.
The collective experience of the year bygone has taught people the importance of owning a property. Hence, last year, once the restrictions were lifted, people started investing, shedding the hitherto ‘wait-and-watch approach.
It’s a really good time for those who are looking for investment options as the rate of returns is maximum in this sector. Also, the banks have reduced the interest rates on home loans to attract customers.
We have found that buyer’s enthusiasm to own a property is even higher compared to the last few months. Real estate investing in 2021 is an early bird opportunity since only a few retail investors are aware of the golden opportunities that exist.
Even though Covid has currently slowed other high-return investments, real estate still finds scope in investors’ minds. Thus, it is wise to grab this opportunity and invest now.
NRI investment in real estate amid COVID-19
The primary purpose of Non-resident Indians to invest in real estate has been for earning rental income. However, the uncertainties fueled by the pandemic across the world has motivated the NRIs to own a home in India as well. With deposit rates falling in the range of 6-7 percent, and the declining value of the rupee against the US Dollar, the NRIs are actively looking for investment opportunities in the Indian real estate market.
NRIs are increasingly investing using the online platforms as the pandemic has fostered the use of virtual visits, hassle-free property bookings and this has enabled the NRI community to browse, select and invest in real estate online.
The NRI investment in Indian real estate in FY 2021 stood at $13.3 billion which is expected to reach $15 billion in FY 22.
NRIs who have invested in prime cities like Pune, Mumbai, Hyderabad, and Bangalore have preferred to stay invested. In fact, Bangalore has emerged as the most favorite destination for NRI investors.
When you begin your investment journey into real estate, make sure you seek the advice of experts in this industry who can guide you in the right direction.
