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Is it the right choice to switch up your real estate investment portfolio in 2023?

We can anticipate the 2023 real estate industry to remain strong. Investors, on the other hand, can indeed be better equipped to steer these challenges and make profitable investment decisions.

Edited By: India TV Business Desk New Delhi Published : Jan 05, 2023 11:59 IST, Updated : Jan 05, 2023 11:59 IST
real estate, real estate investment, real estate investment 2023
Image Source : PTI/FILE PHOTO While the risk is low, the possibility of real estate prices rapidly rising after construction is completed and the geographical position of the land changing is very high.

Significant investment in real estate and acquiring possessions is thought to be the best investment option due to the assured, dependable, and unquestionable earnings and better yields. It provides long-term safeguards and the stand to gain of consistent cash inflows via rental properties since it is a tangible asset. The value of property invariably goes up over time, and rental rates rise as well, actually creating more income stream. The longer you retain one's estate, the more revenue you'll earn when it comes time to sell it. and with a solid investment, you could indeed earn a great deal of money.

The industry's potential to change with the times reinforces optimism and positivity, especially in the longer - term. 

In industries such as hospitality, housing, commercial, retail, and manufacturing, the real estate market has enormous potential. It is one of the fastest growing industries in the country because it offers high yields and is regarded as a safe investment option. While the risk is low, the possibility of real estate prices rapidly rising after construction is completed and the geographical position of the land changing is very high. Furthermore, these investments can be liquidated if the investor requires large sums of money.

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“Real estate portfolio, in specific, provides long-term financial growth. After retirement, a future investment strategy will relieve financial stress. As a result, having a long-term strategy is critical. Real estate investment is one of the most rapidly growing types of investments. Because funds invested in real estate are spread across multiple sectors. Examples include retail businesses, buildings, manufacturing industries, and hospitals. If you want to make a profit in a matter of days, buy land or property,” said Atul Goel, MD, Goel Ganga Group and Author of Real Rich.

Just about every portfolio allocation that tends to attract large amounts of capital fosters creativity and the creation of new segments. Data, for example, is the foundation of the digital future. Data storage requirements are steadily rising in tandem with growing data requirements. Companies are moving information to the server or by using remote places for database servers rather than storing apps and files on a server in the workplace. This is what has exacerbated the need for real physical space for cloud service companies and organisations. In changing times, such trends increase the value and demand for real estate.

“Since the pandemic, there has been an increase in the desire to buy a property, with millennials being the largest segment. As most organisations provide a hybrid work culture, location-neutral workers are investing in properties. Indicators imply that robust and positive momentum will continue to dominate the Indian real estate market in fiscal year 2023 (FY 23) due to the stable structural foundation, rising demand, and declining home loan rates. The real estate landscape is set to reshape beyond metro corridors as a result of upcoming infrastructure initiatives, causing an expansion to the outskirts. Potential homebuyers desiring a well-balanced lifestyle will be attracted by the availability of new open land for the design of a well-planned, integrated development with suitable layouts, allotted parking space, and a variety of social and civic amenities. In addition, the technology in real estate is anticipated to provide real-time remote monitoring, predictive maintenance, expedited risk assessment, and a reduction in production time, thereby facilitating the making of sound financial decisions," said  Siraj Saiyed, Director, Arete Group.

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“Moreover, as large IT businesses shift back to offline work, commercial real estate is also expected to generate strong returns. Furthermore, we can see e-commerce companies competing to grow their warehouse and logistics operations to reach the greatest number of consumers. In short, we can say that the overall real estate industry is projected to experience growth in terms of investment across verticals”, he added.

Ankit Aggarwal, MD, Devika Group added, “Reduced fluctuation raises the likelihood of investing in real estate in your portfolio. You would then ensure a substantial long-term revenue in this way. Without a hesitation, real estate provides the best return on investment. To turn a profit, even so, you must choose the best time to market your property or house. Regardless of whether you're seeking short-term or long-term rental property investments, you must be on the lookout for regional shift patterns and constantly pursue out the best markets to undertake  your action plan.”

So, irrespective of one's ideal investment approach, it is indeed extremely crucial for market participants to have access to the most up-to-date techniques in order to remain profitable in this competitive marketplace.

To summarise, we can anticipate the 2023 real estate industry to remain strong. Investors, on the other hand, can indeed be better equipped to steer these challenges and make profitable investment decisions.

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