Why Is Real Estate Industry Said To Be a King of Investment??

Stocks, bonds, mutual funds, investments, and real estate - though the list seems to be endless and making a choice is still considered to be a Herculean task. Especially for a family with two children in school, with a career that has just started and it can be extremely crucial decision for them. Given below are some of the reasons as to why real estate industry is believed to be the king of investment.

• Inflation Hedging: 

The relationship between real estate and GDP has grown on the basis of the ability of real estate asset class to foster with inflation hedging. In simple terms when the economies grow and expand, the demand for the real estate industry consequently increases along with the increase in rentals and that translates into higher capital land prices.

• Retirement Income: 

The pressure on the current income that has to be spent on varied channels is high. Between the school fees, fuels, and marriage funds, almost each and every one’s saving account will continue to get thinner and thinner with time. Therefore, investment in real estate can be extremely useful for people in their retirement days.

• The Positive Cash Flow: 

It is the real estate industry that generally gives you huge investment options wherein you could receive a guaranteed and tangible income throughout the year. This is what exactly a positive cash flow is.

• Scope of appreciation: 

The real estate industry is generally considered to be one of the safest options in long term no matter what. Industry Experts in the realm of real estate industry agree that in a period of ten years the real estate industry has seen the highest scale of appreciation in comparison with any other class of investment.

• The Tax Benefits: 

Real estate sector is one of the major contributors to the country’s GDP. And since the government wants to promote affordable housing and housing for all, the investments in the real estate is bound to give you tangible tax benefits of as much as INR 1, 00,000 in the upcoming year.

• Leverage: 

Leverage here in simple terms or in terms of the real estate industry would mean the ability to use the borrowed capital in order to ensure a potential return on investment. Real estate industry is the only possibility among various investment classes that allow for leverage. For example by paying a minimum of 20% of the cost of property, you as the owner could control the income from the property. The remaining 80% can be availed from the bank in form of home loan.

• Diversification in the investment portfolios: 

Having a diverse investment portfolio would only help you in diminishing the risks and increase the returns on investment. Assets which are not co – related to each other in the same portfolio would decrease risks.


This is a guest post by Ava Jacob who is working for a real estate project named bren imperia bangalore. The developer has more than 7 years of experience in large-scale real estate development involving construction of luxury apartments.