Investing in Real Estate amidst Inflation: How to Go About It?

Inflation has been a constant component in the Indian economy for long. In the last couple of months, inflation rates in India have increased significantly. Considering the high cost of living, people have been looking for viable means to invest wisely. Since the real estate sector offers more stability compared to other investment avenues, you might be wondering whether or not it would be right to invest in this sector. Amidst inflation, how would real estate investments perform?

Well, you must have noticed the increment in the overall prices of properties. So, the average property prices are set to rise in the coming months. When you look at the modern market economy, you need to consider inflation to be a part and parcel of it. Forward-thinking investors are looking forward to hedge their bets to beat the inflationary pressures.

Between 2022 and 2027, the real estate market is expected to witness a 9.60% growth. The demand for affordable housing in India is rising. This is one of the prime elements that drive the investments. Besides, the government has been investing heavily on infrastructure projects like air, rail, and roads. These investments would also foster a fast growth of the real estate market.

In India, real estate happens to be a safe place to park your funds. So, even when inflation affects the economy, the real estate segment wouldn’t come under pressure. Therefore, it continues to be a viable investment avenue in India.

In the real estate sector, the owner has the freedom to shape the ROI, which makes it different from other options for investment. Besides, investing in real estate brings you substantial tax benefits. When you check out the historical records, you would find that returns from real estate have been better compared to other asset classes.

During inflation, the mortgage rates usually rise. Besides, the material costs and borrowing costs also undergo a spike. These elements can slow the growth of the realty sector temporarily. The investors can take the advantage of low-value markets and bank on the recovery to make the most of it. Therefore, real estate would be one of the best places to invest during the inflation. You can benefit from the high growth of the real estate industry in the coming years.