There’s a lot crazy stuff happening in Real Estate Market in India. For many Investors, Real Estate investments is the biggest portfolio they have. Now with the pandemic situation we are all in, there has been a dramatic change all across India in the way the market is reacting each day.
Below are 5 Asset classes explained that will help you decide your RE investments
Commercial Office Space
The big office towers in Bangalore or Mumbai or Hyderabad or any other Metro cities of India had a exciting office environment before the pandemic with people collaborating with each other at office but with the new norm of work from Home people have proved that by using technology the same collaboration and excitement is replicated. Companies have started to reduce the office space to cut their costs and there by the demand for office spaces have come to a dire situation.
The Big Malls with Movie Theatres were the go to places for shopping and entertainment before pandemic, now with people looking at .com companies to shop and OTT platforms for entertainment the retail spaces have become low in demand and would not yield an expected ROI.
Every family looks at buying an own house to live and then to transfer to their legacy, with new Residential projects evolving each day people have a choice to choose from. With Pandemic people think that property prices will come down but in reality a quality product will not come below Market value. Investing in residential flats will give a minimum guaranteed ROI as the risk is limited.
Buying a Residential plot has always been the most preferred investment. People find this asset class to give them desired ROI with low initial investment. This asset class attracts low maintenance costs, excellent flexibility to build house and easy options to find a buyer.
Most of us dream of owning a piece of farm land, where we can fulfill our passion for farming as well as use it as a weekend getaway. Investing in Farmlands in India has great advantages; the major one being that income earned from and the profit made from selling the farmland are free from taxation. It also seems unlikely that it will be made taxable over the coming years. A farm land can guarantee long-term returns, if it is in an area where the government has planned some infrastructure project in the near future.
In conclusion, during pandemic there is a demand for residential market, and within the market look for investments in Residential Plots or Villa Plots or Farm Plots, which have great ROI in the future.