Ever since COVID-19 began to unleash its power and dangers to our world, we’ve seen lives being hit very hard. It has instilled great fear in our minds not only on the way we live but also on the way we deal with our environment.
Perhaps the greatest puzzle for us has been the sea of uncertainty around us. Many businesses were forced to shut down, leaving people in tatters. The impact of the crisis is out there for everyone to see and experience: stock markets plummeted, jobs got cut, and availability of bare-minimum essentials went from bad to worse. Many industrial sectors, as you have seen already, have been adversely affected. If you have planned your financial future thus far, you may have had to re-think your strategy on what now works best. Let’s take a quick look at the real estate sector if your focus is on it for investments.
According to a survey by Magicbricks.com, property prices across major metropolitan cities have taken a 2-9% hit since March 2020 i.e. phase one of the lockdown. Now is that good news, early enough to invest your savings or income into properties?
According to estimates, India’s GDP percent growth is 0 for FY21. This will have a bigger and a tremendous financial impact on businesses and individuals. The MagicBricks survey indicates that more than 60% of new buyers will alter their decision to buy properties with reduced budgets. Some may choose to play safe with smaller properties while some may wait on to see a market correction as the uncertain period recovers to show any positive sign.
You may be interested in buying properties as the best means of investment because your other funds are not healthy at the moment. After the financial meltdown, many would not want to risk their hard-earned money in volatile investments. Properties seem to be a safer bet as they will continue to be a need even in times of adversity.
Remember to invest in properties only if your horizon is at least a decade. Give property the time to gather good returns. At Dhruva, we can help you find those properties that are affordable and safe, too. Give us a call to begin a meaningful discussion right away.