The stock markets are going through massive volatility and the investors are in for a huge shock. Small investors have lost their earnings and are in the hope of bouncing back. The uncertain global policies after Donald Trump’s re-election are also hurting the stock markets and thus, again, forcing people to rethink their investment decisions.
Historically, in times of financial uncertainty, a tendency has been for investors to seek a safe haven in real estate for any form of investment. Stocks react instantaneously to changes in policy, while real estate offers the prospect of infallible security, steady appreciation, and provides an efficient hedge against volatility.
“We have realised that, With the current long-term upcycle in real estate, this asset class continues to be one of the most stable and rewarding investments. These cycles after elections provide stability and increased opportunity. Real estate booms are often forged by government taxation policy, infrastructure support, and housing incentives, eventually giving rise to mainstream demand. Previous elections have shown that sales of luxury properties tend to spike along with regaining political stability, thus appealing to high-net-worth individuals (HNWIs); this trend marks an optimistic outlook for luxury real estate investors,” said Vishwajeet Jhavar, Founder & CEO of Marvel Realtors.
Experts say that with the new government’s expected emphasis on urban development, high demand for luxury homes in the suburbs, particularly through homeowner incentives will continue. The investor sentiment is shifting as HNWIs increasingly invest in green and tech-enhanced homes, reinforcing the luxury real estate sector’s growth, they said.
“Real estate remains one of the most stable investments, historically yielding strong returns over a longer period. The best investments are made in a growing market, and today’s long-term real estate cycle presents an excellent opportunity for investors looking at medium to long-term wealth creation. Investing early provides a financial advantage, ensuring steady appreciation while securing a future-proof asset,” said Jhavar.
While property prices are surging across the country, the rental yield is also seeing a spike. Latest ANAROCK data finds that capital values in key micro markets of the top 7 cities have grown by a significant 128% between 2021-end and 2024-end, while rental values in many micro markets have appreciated less than the overall capital value growth.
“An analysis of the key micro markets in the top 7 cities shows that in major cities like Bengaluru, MMR, NCR and Hyderabad, average capital values rose higher than rental values between 2021-end and 2024-end,” says Anuj Puri, Chairman – ANAROCK Group.
Thus, the real estate sector remains a lucrative destination for investors willing to wait for long-term.