5 ways real estate investments in India have changed over years
Real estate is an asset class trusted and loved by most people. In Fact everyone wants to own a piece of this asset either in the form of a home, land, or commercial space. For it is a limited resource and highly valued, investors want to grab the best deals for them. Socially, emotionally and financially, real estate has a lot of value that is undeniable. But over the years the way people approach real estate investing has definitely changed.
Many factors including the economical, and environmental forces have had an impact on real estate and changed the way people invest in real estate. These changes have been brought in by the investors, government and other stakeholders to best fit the ever changing world and keep up with it. Afterall the ultimate aim is to maximize profits, bag the best property or invest optimally, so the stakeholders are always on the verge of making changes to have better experiences. Through this blog let’s discuss 5 ways the real estate investments in India have changed over years.
The most recent and obvious change that happened to the world is Covid-19 which impacted every sphere of life some or the other way and real estate was no exception. People’s choices of investing have changed largely due to this. The pause due to lockdown’s in India has caused delay in delivery of many projects. Initially even though there was brief pause or slowdown with investments due to the uncertainty worldwide, the demand only shot up soon after. Luxury homes were in huge demand in major cities like Bangalore, Chennai, Delhi and Hyderabad. People’s needs have changed during the lockdown period, which required them to have a work from home setup which required more space in homes. Need for a dedicated workstation at home has led people to look for homes that can accommodate the requirements. The purchasing/investment trends whether it be residential or commercial have witnessed a divergent pattern due to the covid impact on the real estate sector.
Technology has a huge role to play in every aspect of life these days. The revolution that is bought in due to the technology in every sector is phenomenal. Owing to the advancements of technology in real estate, people are now able to invest, buy properties, own virtual lands etc all at the click of a button. Especially concepts like crowdfunding have become very popular among investors, wherein they can own a piece of land/ property along with other investors over blockchain. Technology has also brought transparency in the real estate sector. Blockchain technology is being adopted to bring in smart contracts, transparent transactions etc. The legal issues over registering and recording lands are actively being tried to be solved with the help of technology. Advent of technology in real estate is redefining the real estate buying, selling and investing on a large scale.
Over the years real estate has witnessed many alternate investment options emergence. With changing requirements of people, the infrastructure being built to accommodate them has led to the development of new segments in real estate. Segments like senior living, co-living, farm lands, co-working spaces, etc are some alternate investment options in real estate which emerged recently. Investors now have options more than ever before. Based on their investment objectives they can choose one that fits their needs. For instance, for an investor who would want to own a property, earn revenue from it, and also use it as vacation property can now invest in farm lands. Farm lands are an excellent investment option which offer good capital appreciation, revenue and also be a recreational property.
Affordable housing has gotten a lot of push from the government and great demand from people. Government is on a mission of helping people to have their own house and has introduced many programs, tax laws and financial aid laws relating to the same. Despite the setbacks due to covid-19 government is still focused on the affordable housing scheme and rigorously working towards it. This has allowed people to gain interest in owning a home of their own with government aid.
Government has taken several measures to safeguard the interests of real estate stakeholders. RERA has to take major steps towards it. Real estate regularization authority has laid out several rules for builders, agents and buyers, and grievances redressal processes which process which has bought in structure in the sector. Relaxation of the FDI rules and allowing 100% investment from foreign has also boosted investments in the sector. Financial support from foreign supports the sector and safeguards the investments made within the nation. This way several other measures like the Make in India program, demonetization, etc have also changed and impacted the way transactions take place in real estate in India.
Changes are common in every field and real estate is no different. Learning and adapting to new developments will only make life easier. Understanding the trends and knowing the pulse of the market is always great for investors in making right decisions. Even Though it is not mandatory to hop on each and every bandwagon, it is better to be aware. Real estate has stood the test of time and proven to be generating good returns to the inventors. It is suggestable to understand the market, do the due diligence, look out for options and make a wise investment decision. Happy investing!