One of the best ways to grow your money in the modern era is by making investments. Whether small or large, every investment has got the potential to be a profitable one. It wasn’t long ago that people only knew about the stock market as a primary investment method. But, this has changed pretty much with the arrival of better technologies for making investments and making profits out of them.
The hottest topic in the domain of investments is the growing popularity of alternative investments such as real estate. The real estate industry has been in existence for a long time, but it has changed a lot from its original form. Better alternative investments are emerging in real estate, mostly due to innovations introduced by technical firms.
There’s still much to learn about this, so don’t worry. We have explained everything about this trending topic in this blog post.
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Let’s go ahead!
Is real estate a good alternative investment?
The real estate industry has witnessed a huge increase in its market valuation in the past couple of years. Its growth potential is much higher than other industries, mostly because the need for commercial or living space is always on the rise. This is something that most conventional investments lack. It makes it worth investing in real estate due to its low risk and high return characteristics.
It is expected that the real estate industry in India will reach a market valuation of $1 trillion by the end of 2030, which signifies its bright future. Also, the industry is expected to contribute 13% of the country’s GDP by the year 2025. Fascinating, isn’t it?
Well, we have a lot more to tell you about the popularity of real estate alternative investments among foreign investors. Let’s move on to the next section for a better understanding of this.
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The growing popularity of Indian real estate amongst GCC-based NRIs
Indians are spread all across the world. Whether it be America, Europe, or the Middle East, we have our people everywhere. To our surprise, the popularity of real estate alternative investments is growing at a fast pace. The industry has witnessed a steep rise in the number of queries from GCC-based NRIs for real estate investments. This can be a good sign for realty builders, as it might mean a huge boom in the commercial real estate demands in top-tier financial hubs of the country.
NRIs from various countries of the world have invested around $13.1 billion in 2021. This is expected to increase by 12 percent to cross the threshold of $15 billion by the end of 2022. Statistics say everything, and it might be a turning point for real estate enthusiasts.
A simple taxation policy and accelerated depreciation profit for properties held throughout India motivate NRI buyers to place their surplus income in India. According to reports, more than half of the world’s 13.46 million NRIs are focused in the Gulf countries, with the UAE, Saudi Arabia, and Kuwait accounting for about 3.42 million, 2.6 million, and 1.03 million Indians, respectively.
With pandemic-induced swings in India, real estate appears to be booming, and as a consequence, investors and purchasers from India and throughout the world have shown enormous interest. Qatar and Oman are residents of 7,45,775 and 7,79,351 Indians, respectively.
Not only the GCC investors but Indian investors as well, especially NRIs, are also proactive in sealing property deals in Dubai. GCC NRIs consider India as their second home. There is also increased transparency in the purchasing procedure and a depreciation in the Indian rupee, which are some of the factors that have lured the category towards the Indian real estate market.
Here are the reasons to choose real estate alternative investments!
Real estate is one of the best alternative investments to choose from. Unlike any other investment option, real estate is by far the safest and gives high returns in the long run. It is a reliable investment option as its value has never gone down. The recent pandemic wasn’t able to slow down its growth potential.
This gives a clear idea of how well the real estate industry performs, even during difficult situations. Also, the advanced investment methods introduced by firms such as fractional ownership. It means that there’s no a longer need for you to make a large-scale investment in assets, but you can choose to make a small investment towards it.
This is a great way of allowing people to invest in real estate, irrespective of the amount of wealth they possess or how rich they are. It means that everyone can invest in these options in a much better way than before.
Assetmonk is a property investment platform that offers services to interested investors. The Sparkle series in Chennai and the Ascend series in Hyderabad are Assetmonk’s NCD investment products. These have an estimated IRR of 21%, allowing investors to invest in high-value homes without the hassle of property maintenance.