Future of Real Estate Investing
Amit Uppal, Co-Founder, Frxnl
An alternative investment is one which is outside the traditional pail of investments in Bank Deposits, Stocks and Bonds, Property, and Metal (or Gold). The classification is not watertight. Some classify property and metal as alternative investments too.
India has had a long-standing affair with real estate. As per RBI, 84% of our wealth allocation is in real estate. We have over USD 1.5 trillion of rental home inventory in urban centres alone - a third of which is unoccupied. Investors of this low-yielding asset class hope and pray for a spike in capital appreciation to cover the low yields. But again, the last decade has not exactly been kind to a rise in residential home pricing in most parts of the country. So, what goes into this unusual high interest in residential real estate, and can we really take this proclivity for granted?
What has driven investment in residential homes?