Interesting Facts about real estate: What Every investor Should Know

Real estate has long been considered one of the most reliable and lucrative investment opportunities. Whether you’re a seasoned real estate investor or just starting your journey, understanding the intricacies of the real estate market is crucial for making informed decisions. Below are some interesting facts about real estate that every investor should know to help them navigate this dynamic industry confidently.

9 Eye-Opening Facts About Real Estate Investment

The following is a list of real estate fun facts. Besides being fun and informative, they can help you learn things you need to know about real estate before you jump on the investment bandwagon.

1. Real Estate is a Good Hedge Against Inflation

According to a report by PR Newswire, inflation has increased by 31% over the past decade. During this period,  real estate investing facts show that the price of homes has gone up by 63%. This is proof that investing in real estate is a great hedge against inflation.

As inflation rises, so do property values and rental income, offering a reliable way to protect the purchasing power of your money. While other asset classes may appreciate, they may not perform as well as real estate.

2. Location Trumps Everything

Location is one of the most crucial factors that influences the ROI of your real estate investment. Property facts such as proximity to schools, healthcare facilities, and public transportation significantly influence property value. So, properties in desirable areas often appreciate faster and offer higher rental yields.

Projects in up-and-coming neighborhoods like Chapal Uptown in Scheme 45 are a great investment opportunity promising high returns. Not only is the location quite appealing, but these houses in the gated community offer a secure, pollution-free, and peaceful environment away from the hustle and bustle of the city.

3. You Don’t Need A Lot of Money to Enter the Real Estate Market

Contrary to popular belief, investors don’t need a lot of cash to start investing in real estate. In fact, all you need is to pay the downpayment, and that can be as little as 15% of the total amount of a property. The rest of the payments are made in regular installments.

Some property developers offer discounts when launching a new project. So, all you have to do is find reputable builders and discuss the payment schedule. For example, Chapal Builders offers a variety of real estate projects with affordable monthly installments.

4. Diversification Opportunities Abound

Real estate offers a range of investment options to diversify your investment portfolio. There is an option to suit every investment strategy, from residential properties to Real Estate Investment Trusts (REIT).

While REITs allow investors to gain exposure to real estate markets without directly owning properties, they can also invest in physical assets, like:

• Townhouses
• Flats
• Single-family homes
• Commercial spaces
• Vacation rentals

Chapal Builders offers an extensive range of physical properties to cater to an investor’s preferences.

5. There is Sufficient Data About the Market

According to the National Association of Realtors, 38% of home buyers are Millennials. This new generation is tech-savvy, and they have access to a lot of home-buying facts.

Like any other industry, data is an integral part of the real estate market. Since there is a lot of information out there, you can monitor the right metrics. This can help you find the properties with the greatest earning potential and value appreciation. A thorough market analysis allows you to target the right location and property type and buy it at the right time.

6. Real Estate Has The Power of Passive Income

Real estate is a great way for investors to earn a steady stream of passive income. Though the rental yield can vary significantly by location and property type, it’s still an excellent way to build wealth over time.

Properties with higher rental yields are better investments. They have greater investment potential and promise a high ROI. For instance, the average gross rental yield is currently at 6.10% in the United States. With this real estate investment fact, investors know what to expect.

7. Real Estate is a Wealth Multiplier

Did you know this real estate fact – over 90% of millionaires have built their wealth, at least in part, through real estate? Over the years, many of the world’s wealthiest individuals have used real estate as a cornerstone of their portfolios. Investing in real estate creates opportunities for capital appreciation, rental income, and equity growth.

8. Real Estate is Resilient

While other investment sectors may experience dramatic downturns during economic crises, real estate often proves resilient. Housing is a fundamental human need, ensuring consistent demand even during tough economic times. The recent COVID-19 pandemic is proof of how resilient the real estate market is.

After the initial lull in home sales, there was a rise in demand for bigger homes away from the metropolis. As more and more people worked remotely, they needed an extra room as an office space and began looking for accommodations in less urban, lower-cost areas.

In line with this real estate fact, Chapal provides spacious residential properties, offering families the flexibility of working from home. For example, Navinta Residences features 3 and 4-bedroom apartments, while Chapal Luxury Villas has roomy one-unit bungalows in a quieter part of Karachi.

9. The Real Estate Market Will Continue to Grow

Even now, with inflation on the rise and financial instability, affordable housing properties continue to perform relatively well. This is an indication that the industry is alive and thriving, and an upward trend is predicted.

As the population expands, the need for homes will rise. Smaller, single-family oriented units that are easy to maintain are already high in demand, such as Chapal Courtyard 1 and 2, which house modern flats with premium amenities that offer an enhanced standard of living. Whether for investment purposes or personal use, investors are keen not to miss out on such opportunities.

Over to You

By now, it’s pretty clear that there are a lot of things to know about real estate. After reading the above facts about real estate, you have a better understanding of the nuances of the market. This will help you to make informed decisions that align with your financial goals. With the right strategies, real estate can become a cornerstone of long-term wealth creation for you, too.

However, that begins with looking for rewarding investment opportunities that offer financial stability, growth potential, and a tangible sense of security. And this is where Chapal Builders shines, offering you endless options to choose a real estate property that fits your budget. Talk to our property consultants to discover your investment potential today.