The rapid growth in demand for digitisation gave an unexpected boom to tech workers. With increased demand, techies-mostly Millennials got out of turn promotions, higher salary offers and appraisals, which increased their disposable income and thus provided them with an opportunity to invest in real estate.
Ever since the widely-travelled Millennials have a first-hand experience of luxury they prefer to invest in luxury real estate projects that can help them lead an opulent lifestyle.
The unlocking of wealth in the startup ecosystem is another forceful factor that has pushed the demand for luxury real estate. Employees are diverting the monetised amount to purchase homes as it helps them make better utilization of the monetary funds with huge tax arbitrage.
The luxury housing segment will witness a surge in the top seven real estate markets and travel destinations. While home buyers would be more inclined to opt for high-rise apartments in tier I cities, they would prefer low rise apartments and independent villas in other cities, hence giving a complete boost to the luxury real estate market.
Another major factor is Investment: An underlying motivation
All of us are buying second homes with investment as an underlying motivation. Close to 31 per cent of HNIs believe it is an opportune moment to invest in the residential real estate segment as the sector is expected to resume price escalation by the second half of the year. Although prices have remained stagnant in the last 18 months, improving market sentiments amid growing demand will affect the pricing soon. Investing in luxury residential properties appears to be a prudent decision.
The price escalation phenomenon in the country is contrary to the developed nations where money has almost frozen. Thriving urban centers like the Delhi-NCR, Mumbai Suburbs and holiday destinations like Goa would be an investor’s paradise. These regions have given great returns to investors in the past. With the growing interest of consumers, they can again become revenue generators.
Other contributing factors
Many other contributing factors are augmenting the growth of the real estate segment in general and the luxury realty in particular. A report by a leading financial institution suggests that the unexpected rise in disposable income, very low-interest rates, cut down stamp duties and such other considerations have worked in the beneficial of the real estate segment. If you’ve been actively looking for ways to make a passive income and diversify your investments, 2022 may be an great time to consider buying an investment property.
Return on Investment is one amongst the Many other popular reasons one would think of investing in the stock market before investing in property, but investment property can have a
In today’s world, the stock market has a level of volatility that is not as attractive for some investors. Real estate, however, is still going strong. It also has the benefit of being a tangible asset, unlike stock. If you are looking for a good return on investment, a well-chosen rental property could be a better option than growing your stock portfolio.
Rather than buying a first home, consider buying a first rental property. For as long as you choose, someone else can assist pay your mortgage, and you’ll potentially start building equity on your property. You may even be able to make money by charging more in rent than the monthly cost of your property. This extra cash flow can go towards debt, bills, rent or savings for the down payment of your next house.