The real estate sector in India has seen a steady growth curve over the past decades. It is one of the safest investment choices that is shielded from many of the markets up and downturns, and resist the cyclical bull and bear phases of the market with greater resilience than most of the business sectors. The sector turns to be even more profitable for investors when the market is going down in situations similar to the Coronavirus pandemics.
Real estate investment is safer because of the nature of the business sector itself. Properties’ construction and lands do not have an expiry date for them. Even in the face of crises (including pandemics and earthquakes), the real estate sector remains stable. In the recent scenario that is affected by the coronavirus pandemic, banks have also reduced lending rates on loans, to encourage borrowers and investors to invest in real estate, residences, and business establishments.
Regulations Bring More Stability to Real Estate Investments
While there was a time when real estate investments proved to be risky because of certain fraudulent practices and negligence involved, times have changed for the better. Real estate in India is now governed by many new laws and provisions which shield and secure investor money better. For instance, the RERA or the Real Estate Authority Act (2016) brought stricter control and eliminated practices, including re-selling and delays, among others. All builders and developers are required to get registered under the RERA Act when they want to start a project. The everlasting nature of the investment helps it resist natural calamities, and the pandemics or the fraudsters also fail to spoil your real estate investment portfolio.
The backbone to the Industries
Real estate is a backbone to many other industries. It can also preserve its strength during a range of calamities, including those related to virus pandemics. All businesses require production facilities offices, retail, and distribution centers. With rising income, Indians are now more open to buying real estate residential properties (even the luxurious ones). The booming real estate and infrastructure sectors have also helped many entrepreneurs realize their dream of opening and running a new business conveniently. Therefore, real estate and its development are an aid to many new and old business sectors and help them see hope even amidst the worst of fears.
Increasing Taxes On Capital Gains
The Indian government has introduced certain taxes that prove to be costly for equity investors. For instance, the LTCG or the Long-Term Capital Tax is levied on equities that are held for at least one year and sold subsequently. Real estate returns are devoid of these taxes.
Other Reasons That Make Real Estate the Safest and Convenient Investment Bet
Real estate investments are safe and convenient due to many other reasons as well. Stock markets are prone to be affected by a range of conditions (including the political ones as well as pandemic caused market turmoil’s), and so are the investments made in shares. In real estate investment, no such regular monitoring of investments is required. The stress-free investment option is also aided by structural reforms. India has still got a vast scope and appetite for structural and infrastructural reforms, and investments in real estate are bound to yield high returns in a not-too-distant future. Real estate may also be among the few investments that can provide you long term as well as short term (regular income) gains.
Therefore, those interested in making real estate investments should not hold themselves back, even when the global scenario seems to be grim (such as the present one where pandemic crisis looms large). The inherently safe investment option will only expand in the coming years and maybe the pathway on which the other industries dwell and flourish.