Investing in real estate is always slightly unpredictable. This is because the market is dependent on several external factors. To put in simple words the budget of the potential buyers, their specific requirements which keep changing over time. It also depends on the economic condition of the country too. Still, it might be possible to obtain a certain estimate of how the property market may or may not fare at least in the current year. Here we shed light on the prospective investment options in real estate in the year 2020.
Investment Options in Real Estate: Would it be Good to Invest in Real Estate in 2020?
Before we make predictions for the New Year, let’s take a sneak peek into what the year gone-by revealed:
The year 2019 saw commercial offices ranking at the top of the investment arena. In fact, lots of investors expressed keen interest in commercial properties such as the likes of warehouses and co-working office spaces. This was primarily because elite rent-generating commercial assets declined in number.
As far as the residential sector is concerned, it didn’t show much hope to investors. This is because the housing market failing to deliver high returns as earlier. Here too, stockholders were seen turning to brighter options like co-living for the same reasons as above – scarcity of rent-yielding housing spaces.
Investment Options in Real Estate: What the Current Year Holds for Real Estate Investors?
An estimate by CARE Ratings mentions that the stressed asset fund amounting to Rs. 25,000 crore by the government was of immense help. This was helpful for housing projects which were on hold for long owing to scarcity of funds. This funding might be able to help them complete their last mile before completion.
As per experts the fund, combined with the prompt practical execution of some of the other government sops, would play a pivotal role in determining the residential sector’s growth in 2020. If this fails to happen, the real estate sector is likely to be hit negatively. This would mean buyers losing hope and interest even further. Also, experts estimate majority of the residential growth to be unveiled by the latter half of 2020.
A group of experts are of the opinion that the next big economic recession is due to hit the Indian market in 2020 itself. However, this is an after-effect of the COVID 19. Besides, the same group estimates that it’s highly unlikely to impact the housing sector. That said, there’s more hope for profitable investment in real estate, even from foreign stakeholders.
Investment Options in Real Estate: Choose The Best
Here are some potentially rewarding investment areas in the property market in 2020:
- Partner with a larger group to invest in a big real estate project
- Buy a rental home/commercial office
- Rent out part of your house
- Invest in REITs
To Sum Up
What the rest of the year holds for the investors still remains to be seen. However, going by the current trends, the real estate market does seem to pose an excellent investment opportunity in the financial year 2020-21. Real estate never loses demand or value. Investing in it can be a great move if done sensibly.
This blog aims to make you realise if investment options in Real Estate are turning to sunshine.
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