Best Time to Invest in Real Estate 2021-22

What Is The Best Time to Invest in Real Estate Analysis 2021

Best Time to Invest in Real Estate: According to the Basic Rule of Economy, when the demand increased, the price gets increased and with the decreasing of demand, the price gets fallen down, right? So, in simple words, if you want to invest in real estate or want to buy the property, it's very recommended to analyze the market and economy first. 

Nowadays, due to the Covid effect, the economy is falling down, so at this time, you can invest in the real estate market without worrying about the risk. These fundamentals are kept the same for always, in fact, this is not applicable for the real estate field only, and further fields are run on the basis of these fundamentals.

The Best Time to Invest in Real Estate

Now, let me explain, why the Covid duration is the best time to invest in Real Estate with the deep analysis and explanation. 

During the Covid, the generation of value or money has not been decreased, but the rotation of money in the market has been decreased due to the insecurity of the future. 

People are thinking about securing their future at this time and that's why they are not spending the money apart from their needs. 

In the current duration, people are not able to predict the upcoming situations in the future and thinking of anything that can be happened and the economy is not stable. 

The other reason, the purchasing capacity of the middle-class people is falling down so they are not able to spend more money and due to this scenario, the Demand has gone down. Since the demand has gone down, but the supply is still available. 

The developers and builders who build the large projects, large commercial projects, large residential projects, and villas have still available property to sell.

But the demand has gone down and due to the fall down of demand, the prices will be dropped.

According to Mr. Deepak Parekh - HDFC Chair Person, there is a drop of 20% in the price of real estate projects.

But according to the experts and legends of the real estate market, the fall down in the price of real estate projects is about 30%.

Reason For Drop Down Prices in Real Estate

The economic crisis today and the worst and uncertain in the history till the date and after freedom of India, we have to come to see this kind of crisis in the Indian Economy.

The Covid effect has not stopped yet, and the third wave is about to come sooner and due to this reason, the people will be tending to save more money and prevent themselves from spending the money apart from their needs.

Having this reason, the demand will become much less and supply is still constant and due to this reason, the prices will get fallen down more 30% around.

One more analysis on why the prices will down of real estate.

People do not have more money to buy property

As the purchasing capacity of people is decreasing due to securing the future, people do not have more money to invest rite now, and the supply is still constant.

So, the buyers are decreasing but sellers are constant, and due to fewer buyers, the sellers cannot rotate their money.

Due to this reason, the prices are supposed to be decreased to survive the business.

Many Properties are on Loan and Borrowing

Many people have bought the properties on loan or borrowing for the investment purpose and it is the very big liability for them in this Covid time.

When people are not sure about their job or business' survival, they cannot afford this kind of huge liability.

So, voluntarily or no voluntarily, some of them will have to sell their property.

Now, with the decrement of demands, supply is increasing, and now you can understand what will happen with the prices of the real estate market.

Demonetization Produced More Opportunities

A similar situation happened also during November 2016, when the government implemented the demonetization and the purchasing capacity of people was down.

At that time also the prices of real estate was falling down and many people invested in real estate and with the stability of the economy, they got great returns also.

But today's scenario is worse than the demonetization duration because at the time of demonetization, the expected time of recovery of the economy was predictable.

Whereas the effect of lockdown and Covid are so dangerous and the expected time of economic recovery is not predictable. 

Results and Returns of Investment in Nowadays in Real Estate

As I mentioned just above that the expected time of economic recovery is not predictable, but one thing is pretty sure that the economy will not be unstable forever.

After an uncertain time, it will start to become stable and with the passage of time, it will be fully stable.

At that time, the demand and supply will be getting balanced and the property will be supposed to be sold on their real prices or more prices.

As a result of this, the people who are investing in real estate with low prices will get very high returns in terms of the prices and rates of real estate properties.

Conclusion

As I mentioned at the starting of the article, the decrement of demands and increment of supply are causes of falling down the prices and rates.

And, another thing, I am not talking about only the Covid and lockdown period, the economy can be down due to any the serious reason, it can also be down due the some sensitive international aspects as well.

The universal best time to invest in real estate is while decreasing the demand and increasing the supply, this time is a golden opportunity for investing in real estate or big projects.

This rule of the economy never changes and it will become constant until the end of the earth and the rotation of money will be carried on the basis of this rule.

If you are thinking to invest during this time in real estate, you can go for it without worrying, it will give very nice returns in the future when the economy will get started to be stable.

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