Planning Your Investments? It's Time You Understand The Hidden Value In Real Estate

At some point of time in life, we all reach a stage where we consider buying a property. Our reasons could vary; it could be to set up a new home, or launch a start-up, or move into a mansion in our hometown for the post-retirement life. Whatever your reason might be, knowing the current market, there's a possibility that you might be sceptical. But, the fact is that real estate is an investment gem that has hidden values most people are unaware of. Here are some of them:

1. Real estate is the world's leading asset class.

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Did you know that the global real estate market is worth $218 trillion? In fact, the % share of real estate as a portion of GDP is increasing rapidly in developed countries like US, Germany and Japan, as well as developing countries like India, China and Brazil. Especially nowadays, people are concentrating more on ¡®non-traditional¡¯ real estate types like student housing, data centers, workspaces and assisted-living communities, which is pretty innovative!

2. Real estate as an investment category is undervalued by about 10-20%.

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Since it's not very easy to buy and sell real estate (due to high ticket sizes and a lengthy transaction process), the asset class is undervalued by about 10-20%. This is called the illiquidity discount. This represents a huge treasure of hidden value waiting to be unlocked, by ideas and innovations that solve these structural inefficiencies.

3. New Fintech players are making investments in real estate more lucrative and reliable.

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Recently, a new breed of FinTech company is making investments in real estate both more affordable and more streamlined. In India, for example, SmartOwner, founded by CEO Vikram Chari is the nation¡¯s first and largest online property marketplace, offering exclusive opportunities that are not available on the general market. SmartOwner uses a combination of technological know-how and deep domain expertise to identify and offer the most attractive and forward-looking real estate opportunities. By giving individuals access to a safe, flexible, and efficient digital process, SmartOwner has sparked participation in a market that was previously closed to only institutional investors. It was ranked the fastest growing FinTech firm in South Asia in 2018, among the 100 fastest growing companies in all of Asia-Pacific.

4. The style of real estate properties in India has evolved in a global manner.

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India¡¯s insatiable demand for houses, flats, and villas has been on an exponential rise (the country builds the equivalent of a new Chicago every year), especially in dynamic cities like Bangalore and Mumbai. An increasingly affluent urban population are beginning to have a major impact on global commodity markets. People love sourcing materials, architects and contractors from abroad, and are even borrowing concepts like open kitchens, french windows, heated pools and so on. So, as an investor, you can be assured of stepping into a world-class space of your own!

So, what say? Why not take a step forward and make that dream come true?