Finance Blog

Is It Wise to Invest in Real Estate Market in India in 2020-2021?

At the beginning of the year, high hopes remained for most economic sectors across India. However, with the coronavirus pandemic spreading uncontrollably, most markets started demonstrating bleak prospects. For both expert investors and common people, continually worsening economic conditions have created fear and uncertainty. In such times, real estate in India has emerged as a trustworthy sector.

So, Should You Invest in Real Estate in 2020?

The real estate market in India has emerged as a saving grace, even witha crumbling economyclutched by the pandemic.Here are some reasons why you should invest in real estate right now.

  1. Real estate is largely a secure investment

In the last few years, real estate had seen a slowdown because of factors like less return on investment, little market growth, and high home loan interest rates. However, with the current equity markets turning weaker and weaker, real estate seems to be one of the safest investment sectors. There is very little volatility in real estate, and the risk adjustment returns are pretty good.Due to this security sentiment that has now been attached to real estate, the sector will receive growing interest, and prices will remain stable.

  1. Home loan interest rates are low

Recently, the RBI announced significant repo rate cutsand fixed the base rate at 4.4%. This will lead banks and NBFCs to set lower home loan interest rates to attract prospective buyers. Even in these troubling times, if you can afford an EMI, these cheap home loans can be your gateway to the real estate market in India.

  1. The sector is largely protected from inflation

While the health effect of the coronavirus pandemic will be controlled at some point, its economic effects are expected to belong-lasting. Inflation might follow the pandemic, and if it does, real estate will instantly become a safe bet. The reason for that is the sector’s strong inflation-hedging tendency. Moreover, if positive economic developments happen and GDP grows, real-estate in India will see increased demand.

If you are a prospective homebuyerlooking to venture into the real estate sector, then affordable home loan is your best way forward. Home loans are tailored to suit everyone – from salaried to self-employed individuals.You can also use home loan EMI calculator to plan your EMIs well in advance.

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