Apart from buying gold, Diwali is also considered as an auspicious occasion to execute a planned investment in real estate.
With many deals stuck due to various restrictions put to counter the spread of Covid-19 pandemic in the last two years, it’s expected that many of such buyers may finalise the deals during this Diwali as situations have become quite normal.
“Festivities have traditionally led to a surge in residential sales. This year, we are anticipating a lot of this to spill over increasingly to the commercial real estate segment as the want to own a house is now increasingly coexisting with wanting to make a good investment for the long term in commercial properties. The democratisation of Commercial real estate via innovative solutions has enabled the asset class to become the go-to segment in RE for investments for institutional investors and retail investors alike. We are witnessing unprecedented traction as a retail investor can access CRE at reduced minimums via PropTech investment platforms – such solutions significantly erode the traditional barriers to entry,” said Aryaman Vir, Founder and CEO, MYRE Capital.
While avenues like REITs, fractional investments etc have made investments easier in commercial real estate, residential housing sales are also expected to go up during Diwali.
“This year has been exceptional for India’s real estate market, including residential and commercial real estate. India, emerging as a manufacturing hub surpassing China, the e-commerce boom, and the rise of the startup ecosystem are the key reasons for the sudden boom in demand for commercial real estate (CRE) in India. Talking about various investment models like AIFs & fractional ownership, REITs, etc., are seeing double-digit growth. This trend is expected to continue for the fiscal year’s second half. In the past 30 days alone, for instance, Strata has raised over Rs 100 crore. AIFs witnessed a massive jump of 38 per cent in the calendar year 2021 compared to the previous year. We expect this trend to continue while the growth would positively outgrow the last year’s,” said Sudarshan Lodha, Cofounder & CEO, Strata Property Management.
“While real estate as an asset class is not directly linked to the festive season investment, it is one of the most considered stable and investable asset classes. In contrast, all the other traditional investment avenues like gold and new-age options like crypto have witnessed increasing volatility and downfall. Having said that, the current demand for CRE is expected to continue as the demand for different CRE options tends to rise,” he added.
