The real estate advantage: building wealth for future

Manan Shah
Managing Director, MICL Group

In today's evolving investment landscape, there is a discernible shift in how individuals perceive real estate as a valuable financial asset. Pursuing greater security and stability in investment portfolios has resulted in a growing appreciation for the importance of real estate. This paradigm shift has gained traction, and as more discretionary capital has flowed into real estate, investments have developed predictable and tangible financial stability. Because of the inherent safety of real estate investments, this movement has gained substantial traction in the last three years.

Diversification & opportunities

Real estate investments have unique benefits. Diversifying your portfolio with real estate gives you access to a lucrative niche. Unlike stocks, bonds, and mutual funds, investing in real estate may diversify your portfolio and profit. After retirement, real estate investments can provide passive income and capital gains. Real estate investing can help you retire comfortably, and its long-term value enhances an investor's nest egg.

Passive income & financial security

One of the key benefits of real estate investments lies in their ability to generate passive income, even after retirement. Income from real estate properties is a reliable and sustainable cash flow, ensuring a secure financial future. As you enter retirement, your real estate investments protect by mitigating the risks associated with depending primarily on traditional retirement funds. Real estate becomes a valuable asset that continues to contribute to your financial well-being in the long run.

Appealing to millennials

Because of its value and security, real estate investments are increasingly appealing to the youth. Millennials seek long-term capital accumulation and financial stability, with real estate providing security and control over their assets. Unlike volatile markets, real estate has historically appreciated. By investing in real estate, millennials can diversify their portfolios beyond equities and bonds, as buying real estate means stability, control, diversification, and income. As this generational group gains financial independence, their desire for real estate grows. People of all ages want to save money and move into larger homes, and we see the hybrid work culture trend prioritising a large home for living and working.

Macroeconomic indicators

Favourable macroeconomic indices in India have made real estate investments a boon for retirement income, capitalising on a booming economy's solid GDP and healthy tax receipts. As discretionary income rises, people seek the security and stability of real estate investments.

Notably, the Brihanmumbai Municipal Corporation's painstaking rehabilitation activities have significantly impacted the real estate market, attracting investors with regulations encouraging property acquisition. However, real estate investments must be cautiously approached, considering location, market trends, and possible profits. The tailored investing advice is now available, thanks to data-driven insights enabled by cutting-edge technology, allowing individuals to make informed decisions in this volatile landscape.

In conclusion, the surge in real estate investment allocation can be attributed to the growing awareness of the importance of financial assets and the need for increased security. The consistent demand for real estate, driven by the aspirations of millennials and the desire for larger properties, coupled with favourable redevelopment policies, underscores the enduring nature of this investment avenue. As individuals plan for retirement, real estate investments stand out as a reliable and rewarding option, providing financial security and the potential for long-term income generation.

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