REALTY : Why investing in property has emerged as the in thing?

Reason 1 : “Data for the past few years show thatreal estate has been a rewarding asset class. For example, in 2011, one of the worst years for equities when the Sensex fell nearly 25%, prices of homes in most Indian cities remained firm despite the overall economic uncertainty, both in global and domestic markets? – Business Today

Over half a century, real estate investment has gained popularity over other available options. While investing in stocks/bonds and gold is an easier task, you can never be sure of the returns. On the contrary, property investment usually follows the principle, “ A penny invested is a penny earned twice?

Reason 2 : “Experts believe that the wide gap between demand and supply in residential real estate will keep prices firm over the long run.'NHB data itself show shortage of more than 20 million homes. There is an acute shortage of homes, especially in and around the main cities due to population migration that is happening due to growth opportunities. As a result, prices have generally tended to increase over the medium to long term,' says Balaji Raghavan, CEO & CIO, Real Estate Fund, IIFL? – Business Today

With population boom in third world countries such as India, need for residential space is increasing exponentially. The price of land per square feet is also increasing in multiples and will continue to do so. However, the price of gold and stocks is very much dependent on the market; market being so unpredictable.

Reason 3 & 4 : When you invest in realty sector, specifically in residential projects, a safety net comes along. No matter how well-settled you are, it is always good to have a plan B to exercise in times of crisis.

At the same time, you can let out your apartment, for a secondary source of income. Based on statistics, by letting out, one can recover as much as 10% of the total amount invested.