Real Estate is the #1 asset class for investors right now. Time to buy-in

2 min read

Ask any naysayer whether it’s the right time to invest and he will utter a big NO. The time now is ominous and the only thought that bounces in our heads is to keep whatever money we have, safe and secure.

While alarm bells have started ringing in almost every household, there are some who can still muster the courage to see a silver lining amidst this gloom and doom. While they may be vilified by the general citizens for seeking to milk profit from a crisis, the truth is some investments are necessary to prevent a market collapse.

History stands proof that people who look at bad times as opportunities rather than threats have triumphed later and passed the upheavals of time with flying colours.

While stocks have turned volatile and unpredictable with huge swings, the #1 choice for investment right now is real estate. Real estate braved the crisis with a steely heart and managed to almost ride out of it with cuts and bruises.

Real estate as an asset has trumped gold, stocks and fixed deposits time and again and the current crisis is no different. While sales volumes in real estate have dipped considerably in the past few months across India, homebuyers and investors are not looking at how many properties are sold in this present situation; rather they have their eyes peeled out for the impact of this invisible pandemic on real estate pricing.

Although real estate prices have remained muted for the past few years, the perception that properties are still unaffordable had weighed in on buyers. But the mindset has changed during this pandemic for fence-sitters and wilful homebuyers as once-in-a-lifetime payment plans and never-before-seen discounts have goaded them to invest in real estate.

For such people, the courage to take this overbearing risk isn’t out of immediate necessity but keeping in mind the long-term benefits. Homebuyers investing their hard-earned money in real estate at the time of crisis feel that their money is best used and that their investment is safe from future market forces.

The possibility of receiving good rental income year-round and having excellent potential for future appreciation has made them realize that their risk is worth it.

With re-densification becoming a hot topic of late due to burgeoning risk of infection, people living in rental homes in congested places are on the quest for ready-to-move homes in gated societies. Properties having huge green spaces, health amenities and spacious abodes are ringing well with the demands of imminent homebuyers.

A recent survey conducted in April and May 2020, says that 73% of homebuyers in the age group of 25-45 are looking for ready-to-move homes. 60% of the homebuyers have expressed their interest to buy a property within six months while 21% are willing to shift to a ready-to-move-home having a delivery time of one year.

These stats come as a good tiding for the real estate sector looking to resurrect their fortunes. The pandemic has changed the behaviour and perception of the consumer who is looking at real estate as the best bet to sustain himself in the near future.

The story of Square Yards registering a record 3000 homes sold during the pandemic stands as a glaring testament to this new perception. This will be the driving force for real estate. Real estate developers have only to make sure that they provide seamless channels for property transactions to help homebuyers realize their dreams.

Sumit Mondal Content Analyst at Square Yards
Sumit Mondal Content Analyst at Square Yards