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Is Fall in Stock Markets the Time for Real Estate? Research Team | Posted On Saturday, November 07,2015, 06:08 PM

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Is Fall in Stock Markets the Time for Real Estate?



Stock Markets all over the World are crashing. The Chinese Stock Market has crashed. Brazil and Russian stock markets are going through a tough time. Can the Indian Stock Markets be unaffected? The Indian stock markets which were long resilient, have also started falling. In these troubled times, is an investment in real estate good for you?

Is This Your Time?

You have been waiting a long time to buy your dream apartment. Every time you want to buy your dream apartment, the price rises. Your dream apartment is just out of reach.

The Villain… Builders and Developers

Builders have a lot of unsold inventory, in large metro cities of Mumbai and Delhi. In spite of this, they have been reluctant to sell apartments and properties even as prices fall, preferring to hold on to their inventory. Now the situation is a deadlock. Builder’s losses are growing. Builders can no longer look to hold on to their inventory and are forced to sell. Builders are now offering you, handsome discounts and freebies. Gold coins, ACs in all bedrooms are some of the freebies builders are offering you, to buy their houses and properties. This is now a buyer’s market.

See Also: Stock Exchanges In India

The ball is in your court. It’s raining offers…

Why Buy Real Estate?

You have invested your hard earned money in the stock market. You hope that one day, these investments will give you a massive profit. The stock market moves up and down regularly, sometimes several times a day, leading to a lot of volatility. You are worried…really worried….

You can’t handle the stock market and fear for your investments.

But What About Real Estate?

Yes, real estate prices do crash….But when they crash, they do so slowly. A crash in the stock markets can wipe out your investments. A crash in the real estate prices is unlikely to wipe out your savings.

Land and property are always in short supply in India, especially in the metros. You expect to land and property prices to generally rise. Even if real estate prices do crash, they would rise soon.

The Growth of Smart Cities

A city which provides you basic infrastructure such as 24/7 water and electricity supply, excellent sanitation and solid waste management, a very good public transport system, well connected IT Systems to promote Governance and look after your safety and welfare. This is a smart city. The Government is looking to promote, 100 smart cities in the country. This can only be good for you and the real estate industry. As cities grow and develop, you and your fellow citizens would leave villages and migrate to cities. What better place to migrate than a smart city? You can reside and work in a smart city, but for this, you need to buy a house or a property there. Real Estate agents are offering you, lucrative deals to buy a house or a property in a smart city.

You can also purchase a house or property in a smart city and use it as an investment.

SEE ALSO: Should You Buy Under Construction Property In RERA Regime?

An Opportunity to Earn Rent

There is a huge demand for rented houses and apartments in Metros and Major Cities. You can buy apartments in these cities and rent them out, earning a rental income. A number of your fellow citizens, migrate to cities in search of jobs and a better life. You can give your property and house on rent and earn handsome returns through rental income.

See also: What is Primary Market?

Real Estate is Tangible

You work very hard to buy real estate. You might even take a home loan to buy your home and property. After all this hard work, here’s your reward. An asset which you can see, touch and feel.

Yes…real estate is a good investment and more so when stock markets crash.

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