Investing in the real estate is every Indians favourite. It is said that the real estate segment witnesses more investments than stocks and bonds put together. There is not just one factor that is leading to the change in this sector.Rather there are end number of interlined factors. Real estate emerging trends is the hot topic of discussion in every corner of the country. Let us look at the emerging trends in real estate to get to know about all this.
The financial market has become more independent and open for this sector. More and more financial institutions are happy to give loans to the consumers to buy houses. The competition is huge and the banks are trying to mint money off interests during these tough times.
Real Estate Emerging Trends: Advancement of Technology
With the advancement of technology, various portals are trying to incorporate technological innovation in the real estate sector. When we look at the real estate trends in 2020, we clearly see a boost in the real estate tech domain too. In 2020, the investors are looking ahead to a more significant profit margin and hence are focusing more and more towards the efficient ways to move ahead.
Investment Inclination
Asset tokenization has also seen a rise. Trends in real estate in India have a major chunk of asset tokenization. Tokenizing of the assets increases its attractiveness and also increases the reach of the asset. The capital required was the major barrier to investing in real estate. With the ideology of asset tokenization, people do not have to care about the hefty capital and can now invest in the fractions that have been created. The overall capital required gets reduced by a lot and even the lower middle class and lower sections of the society can invest in this sector. This is a major real estate investment trend as it is driving more and more investment.
This is not the only advantage of asset tokenization though. Along with the benefit of reduced capital, it also opens the door for liquidity. At times people are stuck with their properties as it is not very easy and fast to sell your property in India. Asset tokenization solves this major issue and opens the door for fast liquidity.
These investors won’t be bothered with the concept of mortgage. When you want to invest in real estate, you would ideally go to a bank and get everything processed. You will pay a huge amount of interest for the loan you have taken. This will lead to a reduction of the end profits you have dreamed for. With the modern concept of asset tokenization, you don’t need to bother with the mortgage!
Banks also re-evaluate the valuation of the property with time. At times, the banks choose to do a margin call if the valuation of the property reduces. In this case, you would have to shell out some money to sort out the mortgage issue.
To Sum up
When we examine the trends in real estate in India, digitisation and fractionalizing is definitely the way ahead! It tends to offer end number of benefits to all kinds of investors and fosters a productive culture.
This blog aims to inform you about trends in real estate in India.
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