13/05/2020
Is real estate a better investment option compared to other asset classes amid COVID-19?
Experts said the segment offers relatively lower risks and offers greater scope for diversification. In uncertain times, it also provides for an income stream.
With uncertainty prevailing due to the COVID-19 outbreak and stock market volatility arising out of it, investing in real estate properties may become the new normal. The crisis has highlighted the need for shelter and protection in tough times.
"In these uncertain times, instead of looking for investments with quick returns, go the traditional way like your grandparents and select conventional investment options like real estate. It may not yield immediate returns but by being less volatile than the market-driven investments, it is definitely a safer bet in the current situation. And it only gets better as the industry is currently witnessing one of the lowest interest rates in a decade,".
Ready-to-move-in homes have been the preferred choice of end-users in the recent past.
"The security of owning a physical asset during a coronavirus-like crisis now combines with a rising aversion to high-risk investments. As a result, the demand for residential real estate has increased.
The general homebuying sentiment is also guided by cheaper home loan interest rates.
Interestingly, 72 percent buyers still prefer to buy property out of which 44 percent have not yet changed their plans.
"Real estate as a preferred investment choice is well ahead of the other options like gold, stocks and mutual funds. Keeping in mind the uncertainty of stock markets, real estate is undoubtedly the safest investment option for people across segments. It has always been proven that physical assets provide highest sense of security,".
It is also perhaps the right time to invest in property because home loans are being offered at a lower interest rates. Besides, this is the right time to negotiate hard and strike a deal to get the best discounts.
"The residential sector will surely see a rise in demand for ‘owned homes’, especially affordable homes. Besides the millennials who will not prefer to buy rather than rent, the demand for homes will also come from first-time buyers as the working class is experiencing difficulties in paying rent in such times. A lower home loan interest rate is also a driver that will encourage people to own a house,".
