New Delhi, March 30, 2020: “The struggling real estate sector and the home buyers trapped in COVID – 19 worries, have been relieved a bit with the RBI’s measures. While the repo, reverse repo and CRR cuts would increase lending powers of the banks to the businesses, a suggested moratorium of home loan instalments and interests thereon, which the banks should implement with immediate effect, will ease people from financial burdens. It will support our business continuity plans, as well, because more liquidity will help the homebuyers schedule their buying plans in the short run.
In this volatile environment, the real estate has been and will further be proved as the most secure investment. The rental yield in the residential asset class will be between 2-5% basis the size and location of the apartment and coupled with about 5-7% of internal rate of return on capital appreciation over five years horizon. This will make the real estate investment a safe heaven for investors with a total yield of 7 to 10% as returns. It will pave ways for positive arbitrage – investing in the residential real estate category, which has been almost non – existent for the last decade or so.”
Corporate Comm India(CCI Newswire)
