Over the last couple of years, there have been many important transformations in India’s real estate sector. Tax reforms like GST and regulatory reforms like RERA have introduced a whole new level of transparency and efficiency into the sector, thereby making property purchase a reliable and lucrative investment option. Moreover, the advent of REITs and the many new real estate technologies have further fuelled the demand for property in India.
Here are some compelling reasons to invest in India’s real estate:
1. The growing demand for real estate: With the Government’s Housing For All By 2022 initiative, there has been a marked increase in the demand and supply of housing units across the country. Moreover, the IT boom as well as the rise of the gig economy have created employment opportunities in many new and smaller cities, thereby leading to rising demand for both residential and commercial real estate across the country.
2. Low barrier to entry: With the advent of REITs, it is now as easy to invest in real estate, as it is to invest in mutual funds. REITs work in a manner very similar to mutual funds, and they allow investors to diversify their investments in a secure manner. At the same time, with the aid and security of a home loan (of which there is an abundance in India), you can invest in a property worth crores, even if you have a fraction of that amount with you at the moment.
3. Income advantages: If you’re investing in a ready-to-occupy home (and there are some enticing GST concessions on these), then you can generate instant cash flow by renting it out. With this rental income, you can further diversify your investments or use it to pay off your EMI. The demand for rental homes in India is extremely high, so it makes sense to buy a home in an area that witnesses this demand.
4. Tax benefits: As per the Income Tax Act in India, you can avail of many lucrative tax benefits against home loans. There are various tax benefits that apply, depending on whether you’re a first-time homebuyer, a loan applicant paying EMIs, a joint owner or an end user of a property.
5. Transparency, efficiency and ease of purchase: With sectorial reforms like RERA, GST and the Benami Property Act, investing in real estate in India has now become more secure than ever. The processes are transparent and easy to understand, and investors can look towards world-class projects that are compliant with the prescribed standards.
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