Real Estate Returns In Last 20 Years In India
Real estate investment has been a popular choice for investors in India for many years. Over the last two decades, India has witnessed a significant change in the real estate sector. The real estate market in India has grown exponentially, and the returns on investment have been impressive. In this article, we will explore the real estate returns in India over the last 20 years.
The 2000s
The real estate market in India saw a significant boom in the 2000s. The economic liberalization policies of the government and the growth of the IT sector led to an increase in demand for real estate. The prices of properties in major cities like Mumbai, Delhi, and Bangalore skyrocketed. The demand for commercial properties also increased, and the rental yields were high. The average returns on investment in the real estate sector were around 20-25% during this period.
The 2010s
The real estate market in India witnessed a slowdown in the early 2010s. The government introduced several policies to control the rising prices of properties. The introduction of the Real Estate Regulation Act (RERA) in 2016 led to increased transparency and accountability in the real estate sector. The average returns on investment in the real estate sector during this period were around 10-12%. However, the rental yields remained high, and the demand for commercial properties continued to increase.
The Impact of COVID-19
The COVID-19 pandemic has had a significant impact on the real estate sector in India. The demand for residential properties has decreased, and the prices have fallen. The demand for commercial properties has also decreased due to the work from home culture. However, the government has introduced several policies to revive the real estate sector, and the market is slowly recovering. The average returns on investment in the real estate sector during this period are around 8-10%.
Conclusion
The real estate market in India has witnessed significant growth over the last 20 years. Despite the impact of the COVID-19 pandemic, the market is slowly recovering. The returns on investment in the real estate sector have been impressive, and the demand for commercial properties continues to increase. Investors can consider real estate as a viable investment option in India.