Indian Real Estate Market | Is it a GoodTime to Buy Properties?
According to imarc, the Indian real estate market is expected to exhibit a CAGR of 9.60% during 2022-2027.
Let's be honest, real estate investment has a bad name, but that is because most people don't know how to do it right
After buying and selling 77 properties in the first year itself and making massive profits as a real estate investor in Canada, I am here to help my fellow Indians do the same generate millions
In this article, I will show you why it is the best time to invest in real estate in India, even though many countries like the USA, Canada, the UK, Europe, and China are going through real estate correction
So, if you are reading this article, congratulations, your life is about to change.
Overview
India boasts of being one of the fastest growing major economies in the world and is now on the road to becoming the world's third largest economy by 2030, as per Morgan Stanley
The real estate sector is India's second largest employment generator and third largest industry in terms of Foreign Direct Investment flow, contributing massively to the overall economic growth.
For people new to the world of real estate, this industry mainly comprises four sub-sectors: commercial, housing, hospitality, and retail.
And the factors that drive the growth and demand of the real estate market mainly include,
● Public private partnerships
● Arise in the economy
● Government initiatives for infrastructure development
Another significant growth inducing factor is the rising demand for residential real estate brought on by growing urbanization, increased personal disposable incomes, and the need for contemporary office spaces
The good news is that higher Non Resident Indian (NRI) investment is also anticipated in this industry over the long and short terms, majorly in cities like Bengaluru,Ahmedabad, Pune, Chennai, Goa, Delhi-NCR, and Dehradun.
Post Pandemic Condition
We all know that Coronavirus has changed how the world functions
However, despite the havoc created by the pandemic, the real estate sector continued to show resilience and steady growth in the last two years
The first wave of Covid 19 in India brought the sector to a halt Nonetheless, the market had begun to pick pace and showed a positive upward trajectory towards the end of the last quarter of 2020
But as soon as it had begun to recover, the second pandemic wave hit the sector just as hard Fortunately, the effects of the second wave were not as significant or pervasive as those of the first Market optimism was sparked by vaccination campaigns, declining illness rate, and the festive season.
All these factors resulted in a strong comeback of the real estate sector
What makes investment in the real estate industry all the more lucrative today is the government's initiatives, like the Real Estate RegulatoryAct (RERA) and the Benami TransactionsAct
The government is also working as a catalyst and promoting affordable housing development, home buyer interest subsidies, service tax exemptions, and PR for international investors, providing a much needed impetus to the market.
Interest Rates
So, the loan for the purchase of residences, refurbishments, and plots can be taken by both public and private sector banks upon a certain rate of interest (ROI) on equated monthly installment (EMI) to salaried and self employed professionals
The interest rate on home loan can significantly influence the total cost of the house. Even a small difference in the interest rate of a housing loan can have considerable financial implications as home loans are of higher value and longer tenure
Additionally, the RBI inAugust 2022 raised the policy repo rate from 4% to 5 4% in three successive rate hikes As a result, many banks have increased their lending interest rates However, historically the repo rate in India has been between 6-8%, and currently, the repo rate is at 5.4%. So it is still lower than what it has historically been over the past 20 years.
Therefore, in terms of the EMIs that the retail borrowers need to pay, they are still in a comfortable position.
In fact, numerous industry experts also believe that the recent hikes in key policy rates by the Reserve Bank of India (RBI) to control the high inflation rate may have resulted in a moderate hike in loan rates. However, the affordability of the home loan is still very good.
Where is it Headed?
This is probably the question most of you have had in your mind while reading the article
I have great news for you
NITIAayog expects the Indian real estate sector to reach a market size of $1 trillion by 2030 and account for 13% of India's GDPby 2025.
Yes, the Covid-19 pandemic has changed the dynamics of the way people work and stay across the nation but it’s all in the favor of real estate investors.
Hybrid mode of work after the pandemic has resulted in the migration of skilled workforce to satellite cities fuelling the demand for GradeAcommercial spaces in these cities too
Additionally, the Indian government is continuously focusing on the mission of ‘Housing for All’by 2024. With its flagship schemes such as Pradhan MantriAwasYojana (PMAY) and affordable rental housings schemes, the exchequer is in process to make the housing as affordable as possible
All these factors combined are indicative of healthy market growth
Is it a Good Time to Buy Properties in India?
Needless to say, home ownership is a cherished goal.
As per the 2022Aspiration Index survey, a home of one's own was among the top aspirations of young India, and today is the best time to invest in real estate
Despite the fact many countries like the USA, Canada, the UK, Europe, and China are going through real estate correction, India's real estate market is expected to grow in the comfortable range of 8 9%.
Yes, its true that with the pandemic and wars as the backdrop, the real estate industry could not achieve the desired sales numbers in the past couple of years But the pent-up inventory and the eagerness to clear the housing stocks are preventing the prices from soaring.
With a multitude of options ranging from plots, commercial real estate, independent villas, small flats, and villas, among others, and their accessible presence on popular real estate portals, investing in property has never been easier for even the first time investors.
Considering all these factors along with the government initiatives, this is a good time to invest in indian real estate, especially if you're looking to invest for the next 5 years or more.
Prediction
We have already discussed the upward trajectory of the real estate market in India
Real estate in 2022 witnessed prolific growth Thus, strong and positive momentum is expected to continue prevailing in this sector in the financial year 2023 (FY23) Backed by the solid structural foundation, gain in demand, and lowered home loan rates, FY23 will be the fiscal year the industry has long been hoping for.
The spike in commercial activities, combined with a rise in the job market and income levels, will inevitably translate into increased demand for housing
The real estate sector is ever evolving with constructive and creative solutions across residential, commercial, and retail projects Established as the third-largest sector to bring about economic growth, the real estate industry is expected to continue its upward trajectory in FY23
So, if you’ve wanted to invest in real estate but could not take the leap, today is the day, and I am here to help!
About theAuthor
SunilTulsiani, is the founder of one of the largest elite real estate investment clubs in Canada, the Private Investment Club which was started with a goal to make 100 real estate millionaires or multi-millionaires
Aformer police officer turned real estate investor, he shot to fame after he found success on selling 77 properties in the first year alone and came to be known as "the wealthy cop"
Today, Sunil helps organizations achieve financial freedom and wealth mastery through his mentorship programs Be it people building businesses from the ground up or organizations looking to branch out and expand, Sunil helps them identify what works and what doesn't, investigate the room for opportunity and negotiate lucrative deals to make informed decisions and achieve their millionaire dream
Sunil not only spearheads PIC, but is an international speaker, best selling author, and business coach. Sharing the stage withTony Robbins, Robin Sharma, Robert Kiyosaki, Grant Cardone, amongst others. He has been featured on Forbes, USAToday,TheToronto Star, CNBC, Fox Business News and has been profiled on BreakfastTelevision (CP24)
Sunil works by simple rules treat everyone with respect, take the lead role in any project and invest first; create a win win situation for everyone involved and provide massive value!
If you are tired of running the rat race and want to quit the ordinary life, MrTulsiani is here to help you live the life your can only dream of.
He will be revealing all his secrets and success mantras at Growth Summit India in Surat on 10th December, and the Indian Wealth Summit in Mumbai on 17th & 18th December.
You can hear him talk about
● How to become a property millionaire even if you don’t have any money
● How to build a 100 crore business
● How to earn $100,000 USD in the next 90 days without any risk
● How generate and amplify wealth
Today is the day to commit to yourself and see your life turn around
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