Real estate is an effective inflation hedge, and most investors will agree that real estate as an asset class is resistant to the negative effects of inflation.
With global inflation rates jumping from 3.28% in 2019 to more than 8.75% in 2022, it has become usual practise to hedge your assets and money to protect yourself from the assault of escalating inflation and cost of living.
In today’s world, there are a variety of investment instruments that one can use to ensure that their savings do not lose value over time. These include traditional instruments such as equity shares, bond instruments, physical gold, Gold ETF, treasury-bills, as well as newer alternatives such as cryptocurrencies and NFTs.
Gold, without a doubt, functions as a long-term inflation hedge; but, nothing surpasses real estate .Furthermore, with the global population expected to reach 8.6 billion in 2030 and India currently being the world’s biggest, there is an ongoing need for housing units in India and throughout the world.
India now has a 19 million-house urban housing shortfall, which is expected to grow to 38 million by 2030. In such an atmosphere, investing in real estate might be a smart investment, not only to manage the rising cost of living and inflation, but also to prepare yourself and your family for the impending housing crunch.
Regrettably, most people associate the real estate sector, particularly the commercial real estate sector, with institutional investors and believe that it is not as flexible as other types of investments, such as stock market investing. But, with the introduction of contemporary and creative financial tools, nothing could be farther from the truth in the world of real estate.
Real estate fractional ownership is the cure that may work as your key to investing in the real estate industry to reach your long-term goals of diversifying your portfolio and achieving financial independence.
In simple terms, fractional ownership works similarly to stock ownership, but for the real estate market, i.e., by investing to become a fractional owner of a large-ticket commercial or industrial property, one gains partial ownership of the same, which is usually operated jointly by a group of common investors and investments.
By investing in a high-value commercial class property through fractional ownership, one can be assured of recurring and stable income while retaining their share of a high-priced piece of property, granting both profits and flexibility to investors with the goal of realising the true growth potential of real estate markets in India and around the world.
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