The current year 2020 can be considered as a black year for the economies all around the globe. As if the loss of human lives was not enough, the global lockdown disrupted the economies.
International trades were banned, and survival became a task.
Not just small scale businesses but large scale industries too suffered heavy losses. Many industries were shut down, and the prices of essential commodities were soaring high.
Even the wage workers left their jobs and went back to their hometowns. Savings were exhausted, and the Generation Z who believed in rentals instead of owning things learned their lessons.
While everyone was suffering, real-estate saw a boom. Everyone realised it’s not just real estate but a real asset. Many reasons started the rage of investing in realty space in 2020.
Once you invest in land, there is no way that you will be selling it off unless you have to invest in larger land. Even our ancestors believed in owning a piece of land no matter what is the size.
Even a land of 10 sq.ft is a tangible asset that one can offer to their future generations.
Unlike the stocks and bonds, this sector will never hit rock bottom and once you have invested in real estate you will be enjoying the benefits forever.
Encouragement by the government
The government has always tried to reform this sector and bring laws to regulate it to encourage investors.
The 100 percent FDI and reduction in interest on loans are few to mention. The biggest breakthrough was launching RERA to safeguard both investors and developers right.
The continuous infrastructural development and the plans being passed like film city, airports, commercial spaces, etc, have encouraged the generation to invest in this tangible asset.
The markets that saw the biggest fluctuations are gold and stocks. These two were the investments people of our country largely depended on. However, people suffered huge losses in these sectors.
The nationals are still not informed about good assured returns on commercial spaces. As we mentioned above real-estate is an asset and is a long-term investment.
The value never depreciates and there is very low risk involved. Hence, demand increased in 2020.
Media is overloaded with lucrative offers by developers. Some are offering investments from 3 lakh and some are practising property exchanges and barter systems.
Many good opportunities are flowing in the market for fruitful investments yielding higher ROI.
The new way of living
There is a new normal way of living. Masks and social distancing are two additions to our lifestyle. This increased the need for larger commercial spaces and owning a home of our own.
Hence, this became a major reason for increased investments in real-estate.
We all are aware that Indian Real-estate is one of the highest contributors to the nation’s GDP and is one of the essential commodities that one must own. In 2020 people realised this and hence the popularity increased.
Khurrum Zahoor is the CEO & CO-Founder, Alif Realty. He is a law graduate and has been a successful investment advisor. He has 12 years of experience in the real-estate industry.