Is it a Good Time to Buy Properties?

real estate investment

Lets be honest, real estate investment has a bad name, but that is because most people dont 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 worlds third-largest economy by 2030, as per Morgan Stanley.

The real estate sector is Indias 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
  • A rise 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 the 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 in the real estate sector.

What makes investment in the real estate industry all the more lucrative today is the governments initiatives, like the Real Estate Regulatory Act (RERA) and the Benami Transactions Act.

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 a 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 in August 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.

NITI Aayog expects the Indian real estate sector to reach a market size of $1 trillion by 2030 and account for 13% of Indias GDP by 2025.

Yes, the Covid-19 pandemic has changed the dynamics of the way people work and stay across the nation but its 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 Grade A commercial 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 Mantri Awas Yojana (PMAY) and affordable rental housing schemes, the exchequer is in the process to make 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 2022 Aspiration Index survey, a home of ones 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, Indias 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 investment, 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 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 youre 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 (FY 23). Backed by the solid structural foundation, gain in demand, and lowered home loan rates, FY 23 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 FY 23.

So, if youve wanted to invest in real estate but could not take the leap, today is the day, and I am here to help!

About the Author

Sunil Tulsiani

Sunil Tulsiani is the founder of one of the largest elite real estate investment clubs in Canada, the Private Investment Club which was started with the goal to make 100 real estate millionaires or multi-millionaires.

A former police officer turned real estate investor, he shot to fame after he found success in 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 doesnt, 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 with Tony Robbins, Robin Sharma, Robert Kiyosaki, and Grant Cardone, amongst others. He has been featured on Forbes, USA Today, The Toronto Star, CNBC, and Fox Business News and has been profiled on Breakfast Television (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, Mr. Tulsiani is here to help you live the life you 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 dont 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 to generate and amplify wealth

Today is the day to commit to yourself and see your life turn around.

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