Article by Amit Sharma
As you saw in the Covid-19 lockdown period the global economy has already entered into a great recession. Super rich countries like America, Europe will be the worst affected. Almost all the industries-Travel and Tourism, Automobile, White Goods, IT, Retail, Share market, etc are suffering huge losses and there is no ray of hope soon.
Amid all these heart-wrenching news, there is a brighter side of it for India, especially the Indian Real Estate market. As the whole world seems to have lost control, India is doing far better and has managed to contain the pandemic so far.
Why will Indian Real Estate grow?
1. The whole world has lost its faith and trust in China. Americans/Australians/Europeans have started hating Chinese people and soon they will stop using any product/service-connected to China. There will be a complete boycott possible.
2. The only option left for the whole world would be India, which provides the most skilled manpower at the lowest cost.
3. Stock Exchanges, MLM, Bonds, Mutual funds, Index funds, Exchange-traded funds, Fixed Interest, Government Bonds Funds, Physical Commodities, Hotel & Tourism, Bank are no more a Safe option for Investment. Due to lower interest rates, Banks FDes are also not feverous for investment.
4. The Indian government is trying hard to bring Chinese business here. So they are boosting the infrastructure and real estate. The government bringing down business and housing loans rate of interest. Which impact quick real estate boost. Indian Government to Infuse a large amount of money for economic revival. India is all set to grab this opportunity. Make in India, Startup India, etc will give an extra push. India will overcome this crisis much earlier with minimum cost than most of the countries.
5. Commercial office spaces, retail space, Industrial parks, Logistic Parks, will eventually see a spike in demand. As the reverse Migration from America and other countries will soon start happening, it will lead to a great demand in Premium Residential Apartments.
6. Northern India has a Majority Share in the NRI population. Lockdown will leave everyone with a desire to have bigger living space, office spaces, therefore, most of the Occupants would look for better/bigger residential & commercial space.
7. Expected ROI could be almost double in commercial property and almost one and a half for residential property within 3-5 years’ time. However, Rentals will see temporary corrections in the Metro / Urban Cities.
8. India will become the Manufacturing and Export hub (Like China) in the next 5 yrs. Which would create a huge Jobs.
9. Investors can invest in ready/occupied rented commercial properties, and good assured return & pre-lease guarantee under construction commercial projects for regular rental income, due to the downfall of most of the businesses in Covid19 lockdown period.
Better Investment Schemes
Several prominent real estate developers of India and Delhi-NCR resumed their construction work in lockdown period and offering several attractive relaxable payment plans at lower rates such as
10% at the time of booking, rest at the offer of possession -90%
40% at the time of booking, rest at the offer of possession-60%
30% at the time of booking, rest at the offer of possession-70%, etc
Overall we can say that the investment in real-estate in the lockdown period is obviously a lucrative deal for Investors as well as end-users.
Checks Before Investing in Lockdown Period
Before investing in any real estate developer please check the following:-
1. The builder must be renowned
2. Minimum liability builder, prefer zero liability
3. Delivery track record
4.Builders Credibility/Category Rating
6. All Approvals
NOTE: BEFORE INVESTING DO YOUR OWN RESEARCH