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Real estate is one of the hottest alternative investment options in recent times. The market value as well as the growth potential of the real estate industry is growing ever since urbanization began in India. It has attracted the wider attention of the crowd that is keen to invest in various forms of alternative investments. But, is real estate the one that’s perfect for money-making?
To answer this and other queries about commercial real estate as an alternative investment, we’re glad to present you with this informative article. Stay tuned until the end!
Why is commercial real estate becoming increasingly popular among investors?
Commercial real estate is one of the few industries in this country that has survived massive economic blows at times. The recent pandemic couldn’t affect this industry on a large scale. The commercial real estate industry is very stable and promises one of the highest magnitudes of returns in the long term.
Also, the demand for the real estate industry is one of the key factors that keeps it going even during times of hardship. More and more people are being attracted to the urban areas of the country, or let’s say the key economic hubs. Places like New Delhi, Mumbai, Pune, Hyderabad, Bangalore, etc. are witnessing high demand for commercial real estate projects. But, are there any statistics and figures that can prove it?
Yes, the real estate industry has seen a huge growth in its market valuation, reaching $200 billion in 2021. Also, the future of the real estate industry seems very bright, and it is expected to reach a market valuation of $1 trillion by the end of 2030. To add, 3.8 YoY growth in this industry was observed during June 2022. This gives a clear idea of where the industry is headed.
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Here’s why commercial real estate is money-making an alternative investment for you!
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1. Highly profitable
Surprisingly, real estate investments usually surpass inflation rates, which makes them offer you a strong profit. The returns from commercial real estate investments are much higher than compared other forms of alternative investments, like direct equities, etc. Commercial real estate investments can offer you a high magnitude of return without the possibility of having high risks.
Moreover, the process of investment in commercial real estate is much more straightforward than other means of alternative investments. The legal procedures, like stamp duties and registrations, also go hand-in-hand with simplicity. Therefore, investing in real estate makes the chance of falling into scams or fraud much lower.
2. Safe and secure alternative investment
Investing in real estate can be a lot more secure than investing in other forms of alternative investments like cryptos, the stock market, gold, etc. The price of gold, specifically in the Indian market, is known for its uncertainty. As is the case with crypto and the stock market, both of these alternative investments involve a high magnitude of risk as their prices can plummet at any time.
This makes investing in commercial real estate one of the best things to do if you’re planning to make good use of your fortune.
3. High growth potential
Recently, global attention has shifted from China to India, which makes the country’s commercial real estate industry a profitable one for investment in the current situation. As more and more corporations are heading toward India, it is evident that the real estate industry will witness a huge increase in demand for commercial floor space in the upcoming years. Also, investors can enjoy a good amount of wealth obtained from the returns of their alternative investments due to Section 54F under the Income Tax Act.
4. Tax exempt
Home loans for investing in commercial real estate might help you save money on taxes. You could save as much as 1.5 lakh just on the principal sum per Section 80C and up to 2 lakh on the accrued interest via Section 24 if you’re a first-time purchaser. These tax breaks can help you cut your investment costs and make them much more reasonable.
Takeaway
The commercial real estate industry is increasing in value and appeal in the Indian market.
You no longer need to invest in commercial real estate assets by spending a huge quantity of money. Fractional ownership is a better and more convenient investment that allows you to invest in a portion of the asset’s true worth.
The commercial real estate industry in India is thriving, and being a member of it might provide lucrative profits in the future. So, ride this tidal wave to safeguard your future, enjoy a rich lifestyle, and leave a lasting legacy for your dear ones.
You may easily invest in commercial real estate with the aid of innovative investing platforms such as Assetmonk. A wide range of appealing real estate investments is available to help you develop your wealth. You can also make alternative investments through fractional ownership, which increases its convenience.
