Why Real Estate in India is the Most Profitable Investment Option?
Author: Team Piramal Realty
An average Indian is looking for different ways to create wealth and live a financially stable life. Gone are the days when people relied only on their salary and traditional savings to secure their future. Today people want to invest their money and create multiple sources of income outside of their jobs.
The Indian real estate market is thriving and has become a part of many successful investment portfolios because of its high return on investment (ROI) value. As per a report, 77% of the total assets of an average Indian household is real estate. Therefore, if you want to grow your wealth, you too should consider a real estate investment.
Find out more about how real estate is a profitable investment option :
It is a safe investment option
Compared to other investments like the stock market, gold, cryptocurrencies, and even banks, a real estate investment can be a lot safer. The stock market fluctuates all the time. Gold prices may help to offset the market’s fluctuations, but gold brings in other hassles like storage and theft issues. Cryptocurrencies are the “new kid on the block” so, very little is known about them.
When it comes to real estate, the sector has been witnessing a growth in the last few years because of the implementation of RERA, reduced home loan interest rates, etc. On the other hand, the interest rates on savings accounts in banks are considerably low, especially when compared to the rising inflation.
You can park your surplus funds by investing in a property. It is less susceptible to frequent fluctuations and there are minimal chances of theft. Furthermore, the longer pricing cycle in real estate as compared to other assets with shorter pricing cycles means that real estate prices are more predictable and steadier.
It is a rapidly growing sector
The Indian real estate market is growing at a fast pace. The market for real estate is expected to grow from ₹12,000 crores in 2019 to ₹65,000 crores in 2040 and contribute to almost 13% of the country’s GDP by 2025.
With residential and commercial spaces coming up in several cities around the country, including tier 2 and tier 3 cities, you can benefit from exemption on long-term capital gains tax on investment in a residential property under Sections 54 and 54F.
High potential for growth
With the global attention shifting from China to India, a real estate investment can be a profitable option in the current scenario. With more and more international companies making their way to India, there is expected to be a surge in the number of jobs in the country. With the influx of money, more and more people are likely to purchase homes and increase the demand for real estate. This means good news for real estate investors, since they can avail of capital gains tax exemption under Section 54F of the Income Tax Act.
High return of investment
The returns on investment in real estate surpass the inflation rate, offering you real profits. Compared to other high reward options like direct equities, etc.-, real estate can offer you a high return without much risk. The process of investment in real estate is also quite streamlined with legal procedures like registrations and stamp duties well in place, thereby reducing the chances of loss due to frauds or scams.
Home loans contribute to tax savings. If you are a first-time homebuyer, you can save up to ₹1.5 lakh on the principal amount under Section 80C, up to ₹2 lakh on the interest payable under Section 24. These tax savings can help you lower your investment cost and make the investment a lot more affordable.
To sum it up
The Indian real estate market is booming and being a part of its growth can shower favourable returns in the future. So, ride this tide to secure your future, live a luxurious life, and leave a legacy behind for your loved ones.
Piramal Realty offers luxurious homes across Mumbai that offer you the best of amenities at affordable financial solutions. Check out our properties in Mumbai and reap endless returns for life.
Disclaimer – This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.