Why is real estate investing a good investment option
during market volatility?
Market volatility can be stressful. Financial crises, new technologies, wars, and pandemics can create risks that make it hard for businesses and people to plan ahead. Markets rise and fall. Inflation reduces savings. Businesses struggle. In times like these, where should you invest?
One asset stands strong through it all—real estate. According to a CIRIL report, India’s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP. Unlike stocks or cryptocurrencies, real estate investing is tangible, reliable, and built to grow. It offers both security and opportunity, making it one of the safest investments during uncertain times.
This article explores why real estate is a good investment option, especially in India.
Top Reasons Why Real Estate Is A Good Investment Option
1. Tangible Asset
Real estate is a physical asset. It does not disappear like stocks or digital money. Prices may change, but they do not crash like the stock market. During tough times, people look for safe and good investment options. Real estate is a secure option. Even if prices fall, they rise again. This makes it a smart choice for wealth-building.
2. Protection Against Inflation
Inflation lowers money’s value. Bank savings lose their worth. But real estate grows with inflation. As living costs rise, property prices and rent also go up. Real estate investing can provide passive income through rent. The IBEF report states that India's top eight cities witnessed a 7% year-over-year rise in housing prices due to strong housing demand. Prices are expected to rise in cities like Mumbai, Bangalore, and Delhi NCR.
3. Steady Rental Income
Real estate investing gives regular rental income. Stock dividends change, but rent is stable. People always need places to live. Businesses need office space. The luxury real estate sector in India has also shown significant growth of 37.8% in the sale of properties valued at over Rs.4 crore. Post-COVID, there is a rising demand for second home investments. These serve as a holiday home and an assured way to earn passive income. This proves that real estate still earns income in hard times.
4. Housing Demand Never Stops
India’s growing population needs more homes. Cities are expanding as people move from rural areas. Government schemes like PMAY (Pradhan Mantri Awas Yojana) help make housing affordable. This increases real estate demand. Stock prices change with market moods. But people always need homes. This makes real estate a good investment option.
5. Growth Through Loans and Appreciation
You can buy a property with a loan. This helps you own a bigger asset with little upfront money. As property values rise, your wealth grows, making real estate investing profitable. For example, Alibaug’s property prices rose by 10-12% last year. Even a small down payment can lead to big profits over time.
6. Government Support and Growth
The Indian government supports real estate growth. Laws like RERA (Real Estate Regulation and Development Act) protect buyers. This builds trust and reduces fraud. Tax benefits on home loans also help investors. Government projects like metro rail and smart cities increase property values. Homes in tier-two cities with tourism bring steady rental income.
7. Reduces Investment Risk
A good investment plan includes different assets. Stocks and mutual funds are risky. Real estate gives balance and reduces risk. Property values may dip, but they do not collapse like stocks. This diversification of assets protects your money in tough times.
8. Rising NRI Investments
Many NRIs invest in Indian real estate as a weak rupee makes Indian property cheaper for them. They also get good returns on their money. Foreign investors pump around US$ 3.1 billion yearly into Indian real estate. This adds strength to the real estate market.
9. Land is Always Valuable
Land is a great investment. Unlike buildings, it does not need repairs. Land values rise as cities expand. Buying properties in an oversaturated market may not give you high returns, so look for places close to major cities with good infrastructure. In cities like Karjat, Alibaug, and Dapoli, land prices have grown fast due to booming tourism and robust development projects. Buying land today can bring high profits in the future.
10. Tax Benefits for Investors
A good investment plan includes different assets. Stocks and mutual funds are risky. Real estate gives balance and reduces risk. Property values may dip, but they do not collapse like stocks. This diversification of assets protects your money in tough times.
11. Personal and Financial Benefits
Owning property brings security and pride. A home provides comfort and a sense of achievement. Real estate can also generate income or be sold for profit. In uncertain times, a physical asset gives peace of mind. This makes real estate a top investment choice.
Best Investment Options in Real Estate 2025
With the rise of remote work, more people are choosing to invest in resort homes. These offer a peaceful escape from city life while earning assured monthly income. People can enjoy a better lifestyle without giving up work opportunities. Investing in such homes can bring high returns in the future. Many buyers are now choosing second homes in scenic locations. Location is key to success in real estate investing. Places near major cities, like Karjat, Alibaug, and Dapoli, are becoming popular due to good infrastructure and booming tourism. These properties work as holiday homes and rental investments.
