It is a well-known fact that real estate is an appreciating asset. Historically, average real estate prices have multiplied and given healthy and robust returns to investors, despite multiple cycles of recession.

Franklin D. Roosevelt is famously known to have said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” Generations later, what he said then continues to be true — real estate is one of the best assets to own and pass down.

An asset that has the ability to fetch returns, buying a property can be seen as an opportunity to invest towards a comfortable retired life for yourself, as extra savings or as an additional source of income. If the investment is done at the right time with the right developer and reasonably maintained, stable rentals will be guaranteed.

The sector, however, has changed considerably over the years. While it grew in scale it also witnessed waves of consumers, each with their own set of traits and personalities come and go. Earlier, when projects were delayed consumers were willing to wait. Today, the home buyer is young, educated, informed and active. Unlike before, he or she pays off their loan in a couple of years, sells the house and moves onto a bigger and better one. The buying and selling cycle is a lot shorter today than say a decade ago.

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The pandemic added to this growth and brought about several changes of its own. The importance of having a spacious home, and a place where you could spend every waking moment was felt across the world. The work from home culture picked up during this time, or even a hybrid-work culture, is here to stay. During these trying times, homes had to be safe abodes for your family but also sanctuaries that allow you to work in peace. A steady demand for bigger spaces was felt across the globe. This need is also being reflected in the sharp increase — 65% in sales, in the 2nd quarter of 2023 in Pune alone, as many find their footing again in a post-pandemic era.

Interestingly, out of the total 3.65 lakh units sold across the top seven cities in 2022, about 18 percent (approximately 65,680 units) were in the luxury category, reveals research conducted by real estate consultancy firm Anarock. Contrastingly, of the total 2.61 lakh units sold in 2019, just seven percent (approximately 17,740 units) were in the luxury category.

The right time to invest in your home or a piece of land is now, as the buoyant Indian economy and development across all sectors is just about seeing the light of day. Home buying and investments in real estate have also become increasingly popular even amongst NRIs who are looking at India with renewed interest and pockets deep enough to tip the demand-supply balance.

In addition to all of this, low bank home loan rates and attractive financing options compared to other forms of loans, with tax benefit on bank interest paid, financially buying a home is also a sound decision to make. Safe from any major dip, the Real Estate (Regulation and Development) Act (RERA) has regulated the sector, further ensuring that it is a safe investment for all.

Rental income for non occupied properties is also on the rise, which often takes care of maintenance and part EMI. Relaxations in deemed rental laws act as an added bonus. Speaking of earning from your property, among the many benefits of owning a home is the ability to be able to get a loan against said property in case of emergencies.

On a national scale real estate investment directly improves the economy as it is the 2nd largest employer and supports 250+ industries, contributing nearly 6-7% towards the country’s Gross Domestic Product (GDP). This is poised to grow to about US$ 1 trillion in market size by 2030, up by US 200 billion in 2021 and contribute to 13% to the country’s GDP by 2025 as per projections made by Indian Brand equity foundation.

The process of selecting your dream home has also become easier by leaps and bounds. Advent of technology, the internet and multiple channel partners, choosing the right location and investment option is a hassle free process today. Choosing a home can be as simple as clicking on a button. Companies dealing in virtual reality have also made seeing your future home, whilst sitting on your sofa in any part of the world possible. Some channel partners will also visit the customer for presentation and documentation. Multiple project data and comparison is available on your finger tip ensuring that you pick what suits you the best and spoiling you for choice.

In the current buying scenario, all registration and property documentation is taken care of by the developer and / or the channel partner adding to the seamless buying experience. Government records of property purchases are easily available online. Registered documents if lost can be procured from these online platforms. If you have a bank loan then verifying the title of the property becomes something the bank does, letting you be worry-free. Last but not the least, even when your property is old, it fetches good returns by way of re-development projects, which are currently rampant across Pune. These small but very poignant benefits add to the joy of finding and investing in a new property — one that will serve you for life.

Currently, there is ease of buying, safety because of RERA. The upswing in India’s real estate market has led to a multifold increase in land prices, resulting in favorable returns for investors. New factors like Unified Development Control and Promotion Regulations (UNDCPR) which offers FSI are equally inviting for new buyers. Developers are maintaining previous selling rates to sustain their healthy sales and cash flows. Due to the increase in land prices and input costs of main construction material, the prices are bound to increase in the future. Hence, this is the right time to invest in real estate. A property purchased in a good or upcoming location, with reasonable amenities from a good developer, is almost always like a liquid asset and can be sold and monetised in as less as a fortnight!

(By Kapil Gandhi, MD, Sigma One Universal)

Disclaimer: Views and facts expressed above are those of the author. They do not reflect the views of financialexpress.com