Shravan Gupta: How has inflation changed the outlook of real estate?

In recent times Real estate has witnessed tremendous changes. There is no one factor which is responsible for this change. But experts have identified the single most prominent factor and that is Inflation. Inflation and its impact have contributed both in a positive and a negative manner in the real estate sector.

According to Shravan Gupta, Inflation is the most crucial factor in bringing bloom or doom to the real estate sector. Hence it is essential to factor in this point when discussing the Real Estate sector. In the long run it makes sense to invest in Real Estate. One may think that Real Estate is not an essential sector but contrary to belief it’s the second most crucial industry.

How Inflation Affects Real Estate and its Value in the market.?

Contrary to belief, Inflation is one area which has left a deep impact on the real estate sector. This change is never more evident than in recent months. Some ways in which Real Estate is impacted by Inflation can be divided into 4 vital sections:

1. New Construction- Inflation has come about as a real game changer in the Real estate sector. Today more and more people are looking to buy and invest in property to avail long term benefit. It is due to the fact that Interest rate is very low in the market and this has allowed more home investments. This changing trend is beneficial for both builders as well as new age buyers. It is no wonder that one is seeing more new buildings being made today.

2. Low Inflation rate- It is a common knowledge that low inflation is bad for every sector. But it is far from the truth as Low rate of inflation has proven exceptionally beneficial for Real Estate sector. Today consumers are buying more and this has led to consumer buying up to 21%. This has occurred despite the sector being affected by pandemic like COVID. Today housing prices have risen tremendously as well as its demand.

3. Low rate of mortgage- Today the rate of mortgage is very low and this has proven beneficial for real estate builders like Shravan Gupta. According to Shravan Gupta, this trend will continue for more than 4 months and is expected to grow more in forthcoming years. Most experts believe that when rates interest rate is low. People then tend to buy more as it is long term investment.

4. Good Infrastructure- Some experts believe that mortgage rates are at an all-time low. And this will continue to remain till a few more months. Banks too have played their parts as they are giving loans to buyers who are capable of paying back. This has led to more vibrant development in the real estate sector.

In Conclusion:  It won’t be wrong to assume that this trend will continue till 2023. A belief held by some experts and echoed by the likes of Shravan Gupta. Hence, it makes sense to become a part of this emerging sector and secure the future. 

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