For the longest time, in India, fixed deposits, SIPs (Systematic Investment Plans), PPFs (Public Provident Funds) and Government schemes continue to remain the most widely used investment routes.
Ashish Kukreja, Founder and CEO of Homesfy.in and Mymagnet.io
Although among the youth, given their relatively high-risk appetite as compared to the older generation, trendy investment options such as NFTs and cryptocurrencies have been gaining traction, recently. Also insurance instruments in the form of Guaranteed money back plans, pure term plans and other life insurance products are also gaining popularity as the nation recovers from the aftermaths of the pandemic.
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In this crowd of investment options, real estate has been a traditional choice for generations but in the last few decades, the rising prices and lack of transparency associated with the industry discouraged retail investors from actively participating in the industry. But with the setting up of RERA, there has been a revival of trust in the real estate investments. The post-pandemic analysis of the real estate market reveals that, at the root of the new wave of interest in property investment, there is a strong emotional element- the stifling ambience of the Covid days has driven people to create spade spaces for themselves, and what better than a home? As a consequence, industry experts have reported a steady rise in enquiries on property bookings as well as residential property purchases. Additionally, the faultlines in the social fabric and economy that the pandemic has revealed, have not only nudged people emotionally but also have woken them to the fact, something as concrete as real estate will often be a safe asset to fall back on.
Apart from the intimate feeling of home owning, the real estate market provides a great opportunity to boost one’s portfolio. With increasing migration to the big cities, the mushrooming development projects strewn across tier-two and tier-three cities and at an attractive price point, become a lucrative choice for investment. Today even category A developers are moving beyond metros and coming up with interesting projects in cities like Pune, Surat, Dehradun, Goa, Indore, Hyderabad, Ahmedabad to name a few. People are investing beyond end use or rental income yields; they are buying vacation homes and retirement homes basis their appetite and retirement goals. The expert projections of year-on-year increase in the real estate market amounting to a 9.6 per cent CAGR by 2027, are tempting investors who are looking at potential creation of generational wealth.
To tackle the challenges of current interest rate constraint and to capitalise on the surge in the value assigned to real estate as an investment avenue, the builders have devised several packages and offers, to bring the everyman to the table. Innovations such as green buildings, project dedicated to the elderly, and intermediates companies that pair the investor with the right property, continue to enrich the real estate market and pave the future of the sector.
For us at Homesfy, it is important that each customer who places their trust on us, receives a customized solution in return. Whether it is finding the most customized homes that account for the investment purpose or for addressing the immediate residential needs of the customer, our property scouts are always working with reputed developers to provide interesting options. Earlier the company was focused only on sale of newly launched residential projects but very soon it will be entering other segments of real estate investment. Homesfy has filed a DRHP (Draft Red Herring Prospectus) for its IPO, which got approved recently, and very soon will be inaugurating itself on the exchange. The listing of real estate channel partner only solidifies the sector view for the country at large and thereby makes real estate as one of the important elements to consider in one’s investment portfolio of 2023!
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