Is It Wise To Invest In The Indian Real Estate Market In 2020- 2021?
This is one of the most common questions among investors and the answer is definitely YES.
Budget Session 2020-2021 has been over on 1st February and the Finance Minister Nirmala Sitharaman presented the Union Budget.
Here Are the Highlights of the Budget for the Real Estate Sector: -
- Before 31st March, the deduction on housing loans has been sanctioned for affordable housing. To ensure that whether more people are availing for the benefits or not the date of loan sanctioned has been proposed to further 1 year that means the home buyers have the opportunity till 31st March 2020. The objectives are, not only to boost the supply of affordable houses in the country but also will assist some financial help to the people through the deduction method
- While taxing income from capital gains, business profits, and other sources if the consideration of value is less than 5% circle rate both the purchaser and seller will get relief. So to minimize the hardship real estate sector is offering some relief on transaction of 5 % to 10%
- The government is going to invest Rs 100 lac crore in infrastructure over the next 5 years in different sectors like housing, basic amenities, energy, healthcare, educational institutions, transportation, logistics, warehousing, and irrigation, etc.
What is Real Estate Investing?
Investment always brings plenty of benefits; especially it helps to gather higher capital appreciation and when it comes to Real Estate investment then the upshot is lucrative benefits for the lifetime. All you need to be aware of the ins and outs of the industry, market trends before investing in any property.
It has been seen those do smart choices that yield higher returns, so if you are considering investing in real estate then it will give countless benefits in return. Given below are some beneficial property trends you must know before taking any step ahead.
Following are trends for real estate investors in 2020:
- Greater Concentration of Demand
Nowadays jobs are in the second primary stage because most people find it beneficial to invest in different sectors and mostly they choose to invest in the real estate sector. Because you will get higher capital appreciation after investment and most people choose real estate investment to gather lucrative benefits.
- Slowing Home Prices
It is believed that by the year 2025, India will be on a stage where nearly 75 % of the development will take place in the infrastructure as well as in the real estate sector. That means the home buyers will get better infrastructure and improved connectivity which will further give a higher stand of living. This change will bring something unique as it will bridging the gap between metro cities and their small-town counterparts.
According to Global Construction research India will have 1.1 crores annual average house completion by 2025. So in the coming year, the real estate sector will pass through a high and low period and it is wisest that invest in the property market.
- Bigger Gap between Owning and Renting
The novel pandemic has created a hole in the economic sector and most of the hazardous situation you can see in the property market so right now it is tough to purchase a home and expecting for a good rent or resale value. So if you have already bought a property and not getting the exact return to overvalue then either wait for the right time or split a home into several rental units so that you can muster up at least a ratio of the amount that you have been invested.
- Smaller Risks in Smaller Markets
Researchers say that fast-growing cities drive high risk along with great advantages in emerging economies, so if you have invested in the big cities property market then you must aware of it. Generally, investors want to avoid the credit risk you run at a lower end of the investment price range. So ultimately if you can’t expect a higher return over investment specially when the market is slow and chances of competition are less.
But, yes if you have rent out the property then in comparison to the resale amount you can receive a good ratio of rental prices. Thus, if you are planning for an investment then try small risk so that you will have a very small amount of loss.
Current Property Trends that Favour Real-Estate Investors
- The rise in Demand for Emerging Micro-Markets
Generally, the demands of residential homes are quite higher in Micro market areas like Bhiwadi, Sohna in South Gurgaon, and Jaipur and the reason is at this area you can see inflation in the economy. So where people will get the assistance financially, definitely they will search property on those locations to gather more benefits.
- Impacts of the Real-Estate Reforms of 2017
In India, the Real Estate sector is the only one largest sectors that contribute to the major gross domestic product (GDP) and it has been estimated that around 6.5 to 7 percent million jobs are created by this sector. Other than this, the GDP of the country had grown RS 12,000 crore (US$ 1.72 billion) in 2019.
And after the launch of RERA in 2016 and the grant of infrastructure status to affordable housing properties have had a massive and positive impact on the industry.
The RERA (Real Estate Regulation Act) brings uniformity in the property bazaar to protect the interests of the buyers from the malpractices of unfair builders. In addition to this, if you know about RERA then you can see clear transparency in real estate deals, improved accountability of builders towards their developments and it will save you falling from any scam.
Similarly, GST was introduced in 2017 with the ideology, “One Nation, One Tax.” GST has made it easy to do business in the country and not only in real estate sectors but also in other financial sectors; you can see the remarkable increase of it.
In a nutshell, these three factors had created an effective impact on the real estate industry and drive the rise in demand for more real estate investment.
Innovations offered by Builders
The demands of residences are considerably escalating among consumers and to meet their needs developers are presenting them the best kind of lifestyle with their innovative launches. They are continually building theme-based residential projects as comfort homes, senior–friendly homes, kid-centric homes, smart homes, digital homes, and virus-free homes are to name a few.
Additionally, they are wisely injecting upscale amenities to offer homebuyers an enhanced lifestyle. Positively these innovations make a huge demand in property buying.
Will 2021 Will Be A Turning Point in Real Estate Market? Is it wise to invest in the 2021 real estate market?
We all know that the novel pandemic COVID-19 had brought a hazardous situation to all financial sectors and you can see the consequences of it but now the situation is in an alternate phase and plenty of developments are rapidly growing in the Real Estate industry.
The project which was in the pending phase has started to accomplish the timeline similarly other new projects are already planned and are in the construction stage. It has been seen that during lockdown period the demands of homes are escalated just because everyone was doing WFH ( work from home )and they all have been preferred a calm space where they can work peacefully, students can attend their online class in a serene surrounding and that is why the demands for extra spaces were in need. And looking at such kind of demands Real estate industry has come up with terrific ideas such as studio apartments and floors apartments.
Such kinds of developments are not only good for residing but also you can give it on rent and can create good rental income. That means you’ll muster up a higher return over investment. If you closely analyze big cities are highly demanding such kinds of spaces. Investing in real estate will bring you lucrative benefits in the future.
So if you are seeking to add real estate to your investment portfolio, then this is the perfect time to get started.
Let’s take a look at some cities real estate market
Bhiwadi real estate market 2020-2021
Right now, Bhiwadi a promising real estate investment hub, and the reason which makes it a prominent area in the city for regional rapid transportation system (RRTS)and in the operational phase which will cover Gurgaon – Rewar- Alwar region and many more.
In addition to this, Bhiwadi, real estate market is now in a very good stage promising with the upcoming RRTS project. So from that standpoint, it is the right time to invest in Bhiwadi 2020 as the prices of the property may increase later on.
Jaipur real estate 2020 2021
Being the capital of Rajasthan the city Jaipur is becoming the hottest real estate investment zone with an increasing price rate in 2020. The city is the hub of many world-class educational institutes, top-class infrastructure, and good connectivity to other states of India.
Additionally, the city has got beautiful heritage sites and most famous for tourist spots in India which assure a regular cash flow or good rental income if you are planning to invest in the Jaipur Real Estate market.
Further, the city offers excellent connectivity to Delhi/NCR. So from all perspectives, you will get profited.
South Gurgaon real estate 2020-2021
South Gurgaon, is well connected to many NCR regions also the city is loaded with many world-class civic amenities. The city is brimmed with many affordable home options along with some luxury and super luxury. Besides this, the presence of MNCs in Gurgaon hires more than lakh people and nearly 2 lakh workers are employed in this city, so the city is quite known for generating higher employment opportunities.
So if you are considering investing in the South Gurgoan real estate market then without a second thought you can go for it. According to the real estate news in the last few years, the property prices have gone up from 10%-15% and it is expected that it will move upward from here on. So it would be a wise option to invest in the South Gurgaon property market
Why Should You Invest In Smartworld Independent Floors Sector 61 Gurgaon?
At present, Gurgaon city is replete with property options and among them, Smarworld Independent floors are the best housing option. 25 acres low rise- development allows you to live more freely, especially concentrated to offer more privacy with enough space to the home buyers.
Planned with independent 2 & 3 BHK Floors well equipped with contemporary architecture where you can just be yourself. A series of modern conveniences are just outlined skillfully in a 20,000 sq. ft clubhouse to experiences something new in each visitation.
Also, the development is wisely set up in the most sought–after location that connects you Delhi–NCR region, IGI Airport. Providing a smooth transportation facility all around as it is in close proximity to Rapid Metro.
Thus, in the future, the development will attract more benefits and that is why investing in Smartworld Sector 61 Gurgaon will bring an ample amount of benefits in the future.