Residential Properties In India Continue To Be Preferred Asset Class for Investment

In India, real estate has traditionally been one of the valued asset classes. The residential real estate sector has proven to be one of the prime segments that has been contributing to the GDP of the country. According to NITI Aayog, the market for real estate in India will reach $1 trillion by 2030. By 2025, this sector is likely to account for 13% of the GDP of the country. This speaks tons about the importance of real estate as an asset class.

In the first quarter of 2022, the trend of people purchasing large residential properties picked up pace. Following the lockdown due to the pandemic, people have understood why they should have a dedicated study cum workplace in their homes. This explains why people are now investing in extra spaces like rooms, modern kitchens, gyms, and balconies around their homes. Besides, they are increasingly using smart devices that elevate the standard of their living. In the mid-range price category, the demand for budget homes has also been on the rise.

The concept of this integrated lifestyle has led more buyers to invest in homes with enriched social infrastructure close by. For instance, people are vouching for properties located close to schools, colleges, parks, clinics, multiplexes, and restaurants. Homeowners are looking for a more peaceful and secure lifestyle.

Besides, NRIs continue to purchase homes due to several reasons. The low rates of interest on home loans in India, affordable prices, and excellent offers are some of the reasons. Besides, the rupee continues to weaken against the dollar. All these reasons have led to an increased demand for plotted development. NRIs also consider aspects like capital appreciation, besides the need for open spaces. This explains why reputed developers are coming up with plotted developments in different parts of the country.

It is evident that residential real estate has turned out to be a preferred investment avenue. Besides, the real estate sector largely counted on residential real estate while bouncing back after the pandemic. With innovative solutions and new concepts, these homes are catering to millennials. Thanks to the government incentives, residential real estate will continue to be a preferred asset class in India.