How much has the real estate industry changed, and how certain is it that it has resurrected in the post-covid era? To note in an abstract in the aftermath of the pandemic the industry is 65showing a growth curve. As a matter of fact, it is anticipated as the fastest surging industry in recent times. The real estate industry in the 2023-24 Union Budget has allocated a sum of Rs 79,000 crore for PMAY house, the budget compared to last year rose to 66%.
A microscopic analysis of the real estate industry in the aftermath of the pandemic highlights a whole new outlook. The real estate industry is India’s fastest-growing industry of track record in recent years. With the 66% rise in the allocation of budget by the ministry, a limit of 10 crores for section 54 and section 54F. Along with this, to enhance the sector the overall capital expenditure (Capex) for the 2023-24 fiscal year has all been increased to Rs lakh crore. This is approx to 3.3% of the total GDP of the country and this move will timely and unprecedentedly re-boost the demands and infrastructure, particularly in tier 2 and tier 3 cities.
This intervention of the ministry and the increase of allocation of budget in the aftermath of the covid only represent a window of opportunity for investors and buyers. So underlining many expert views here are some things to note while investing in the real estate sector post-2023 budget declaration.
Invest in grade A Units: To begin with, every investor should adhere to the principles of pouring at most 25% of the savings to have more future investment options. When chosen and invested in Grade A assets it will reflect the right foundation, design, and more critically the right market that shapes units with the high rental. The property or project to be invested should be inspected in detail such as its master plan, amenities, configurations, and location.
Location as another defining factor: As Hari Movva, Senior Vice President, SILA also advised location is one of the most critical units for appreciation value in the future. In order to bring the best appreciation mark in real estate investment, conducting market research on the city or a neighborhood with a high catchment area is highly recommended. Securing a premium location reflects a greater market rate. Along with such parameters, it also generated an influx of new enterprise and infrastructure development.
On a second note, it is highly recommended that access to social infrastructure in the location is abundant. The connectivity to civic amenities such as railways station, metro station, schools, and other utilities are considerable. Property well constructed with graded quality is also to be looked out for. Hence for greater returns seeking a growth potential location is highly recommended
Research on REITs: In recent years REIT has been a savior for interested investors in the real estate industry. REITs provide the opportunity to invest in portfolios in many ways and on many platforms. On the subject, if any investor struggles to purchase an entire asset REITs will extend the windows to invest money with equivalent returns. In the year 2023, it is anticipated to witness many renowned real estate developers open doors to REITs.
Moreover, more than 80% of assets are mandated to be operational and income-generating in Real Estate Investment Trusts (REITs). Thus this represents the most plausible investment window for all investors seeking to invest in the real estate industry. It is also a chance to diversify any investment portfolio with lesser risk and the long-term returns are highly intact.