Is it good to invest in real estate during COVID-19?
The result of the COVID-19 outbreak is the lockdown of the economy. Due to an increment in the stock market volatility, the masses look for the number of options regarding the investments. Real Estate can be the best option to consider. Commercial real estate is facing an upward trajectory for the past few years.
The World Bank hopes for a growth rate of 7.4 % in the Asia Pacific. On the other side, there is a prediction regarding this sector that it will be emerging soon because of the Covid-19 downturn. So, it may be a good opportunity for investment in the case of long term. In addition to it, commercial real estate consists of different sectors such as offices, warehouses, data centers, and so on.
In the segment, offices are considered as best for investments and transactions too. It attracted investments of $15.4 billion in the last decade. Several factors result in an increment in the investments. In addition to it, here is the list of factors that lead to increment in investments.
- There is an adaption of technology such as online portals. Now, masses prefer the online real estate portal for looking at the property instead of offline property search. With the help of these online portals, they seek their dream house.
- The reserve repo rate that reaches 3.75% from the 4% will promote the banks for infusion liquidity parked with the term.
- In addition to it, in the case of NRI investments, it leads huge in the case of affordable and mid-segment housing category. As the rate of rupees is falling, so the NRIs show more interest in buy residential property. In addition to that, this time of investment is a quite tangible and rewarding asset too.