Why Now Is The Right Time To Invest In Luxury Real Estate?
In today’s competitive world, a mere salary is not enough to foster the best livelihood. From generations ago, people have always segregated their investments in a dynamic portfolio. This portfolio sources additional income for the individual to meet his expenses which otherwise could not be met by a mere salary. Investment in real estate has always formed a crucial part of long term investments in the portfolios. Recently there have been several fears around this investment due to the existing market condition. The real estate market was in turmoil and faced a depreciating growth rate. However, the growth of this market has been steady ever since 2016. This has further led to great investment opportunities in the sector. Here is a list of reason why this is just about the right time to invest in the real estate market.
Steady Growth Rate
The worst is already over. The market has already tackled and overcome its down period and finally met with some stability. Although not at an excelling speed, the market has been seeing a steady growth rate in recent times. This only means that one can expect a greater increase in the future.
The price-points of real estate have to a great extent stayed steady since 2016 and on the off chance that one considers the annual inflation rates, present-day costs are adequately at limited levels. For a potential venture choice, these ought to be reasons enough to feel free to pick real estate as an asset class. Due to the earlier downfall in the market and slow-moving inventory, all builders are offering low prices to gain a competitive edge.
Variety of inventory
The slowdown of the real estate market saw a pile-up of inventory. This, however, can now be used as an investment advantage. The stock up of inventory offers a variety of properties for sale. It also provides buyers with a higher bargaining power due to the vast availability of supply affecting competition. The prices are already low and due to the inventory being stocked up, the supply is in power with demand and not lesser which provides the buyers with an upper-hand. The buyers can look at various options of properties for investment in their given budget. This ranges from luxury residential spaces, gated communities, plots of land, ready-made move-in homes, empty flats or pre-construction phases. There is so much to choose from.
Low Banks Rates
“Home loan interest rates are at an all-time low and the interest subvention of 30 per cent enables the affordable house buyer to obtain home loans of tenures ranging from 15 to 20 year at interest rates which are effectively as low as 6 per cent.” stated the Financial Express. These low rates provide people with an added incentive to buy homes or invest in real estate.
Increase in rentals
Increase in demand for rentals is another variable to take into account to invest in the real estate market. With the generation of millennials coming into force, we can see a high trend in rentals. They have significantly raised the demand for rentals as they are not ready to buy homes yet. This will give homeowners or those who have invested in the real estate market, a chance to earn an extra source of income. At Isprava, we have adopted this business model. We not only build bespoke and sophisticated luxury holiday homes for our customers but also lease them out to those seeking an exceptional rental experience in a private villa in Goa for rent or villa for rent in Coonoor.
NRIs & HNIs
The constant fluctuation and downfall in the rupee value have encouraged many HNI’s to invest in the Indian real estate market. The increase in the disposal income of HNI’s has further added to the growth of the real estate sector. These HNIs prefer investing in luxury homes in cities or holiday homes in pristine destinations. Both these groups have given a push to the slow-moving wheel of the real estate sector, attracting many more investors and investments.
The announcement of RERA has done a great deal of justice to the real estate sector. Although initially, seen as a taboo, this new policy of the government has been nothing but a boon. It has instilled transparency and punctuality in the market, giving it a boost. The faith and confidence of the buyers have been reinstalled in the market speeding up its functionality.
A summation of all these reasons clearly hints out at the future of the real estate market. One can foresee a clear scope of growth and fruitful returns. Hence, the right time to invest in this market is right now!
Picture Courtesy: canadianmortgagetrends.com, periodco26.com, chsone.in, upjourney.com, express.co.uk