People often come with the following queries: “Which is the most risk-free investment?” “How safe is investing in real estate?” “Is real estate a good investment now?” We will answer all these questions and assess “Why Real Estate is the most Risk Free Investment in Bangladesh.” Take a look at the article for a comprehensive idea.

Why Real Estate is the most Risk Free Investment in Bangladesh

Inflation? No Problem

If you are saving cash, you are at risk of losing value. The inflation rate is between 6-9% in BD. But dramatically, the property value and rental income keep rising with each passing year. There is no drop in value with inflation, even the trend scale goes higher for the real estate value chart. At least, it helps protect the investment’s real value over time.

Tangible/Physical Asset

This is a physically visible asset and differs from the likes of stocks or other digital assets. Thus, one can see and also control the real estate. As a result, there is almost no chance for the value to drop to zero overnight.

Profitability

Real estate is a highly profitable investment and offers the maximum return. Following the operating expenses and mortgage payments, the investors can enjoy a huge sum of profit. The sector is able to generate cash flow. One can rent it, sell it, or utilize it for different purposes. The rental income is also secured, high, and consistent. Because there is a growing demand for houses and businesses in the major cities of Bangladesh. Thus, this demand and income never go downward.

Historically Resilient

There comes the economic turbulence, but the BD property market has always shown stability during those scenarios. You can recall incidents like the 2008 global financial crisis and the COVID-19 pandemic. Despite devastating economic issues, the prices for the properties remained stable. Other markets faced significant crashes, but the property market faced minimal impact.

Demand and Appreciation: Both Steady

There is a consistent demand for real estate, whether it’s the housing or businesses. The demand is intense in cities like Dhaka or Chattogram. Indeed, there is a rising demand in other cities like Khulna, Sylhet, Rajshahi, Bogura, Rangpur, etc. There are driving factors like rapid urbanization, a growing population, and a rising middle-class community. Thus, this sector guarantees a healthy rental income and also a steady yearly appreciation in the values.

Loan and Tax Facilities

Actually, this sort of investment helps you get some massive financial assistance from various banks. One can own a larger asset with a comparatively small initial capital outlay. Furthermore, the real estate investors also get the privilege of tax incentives and deductions thanks to the country’s government, which offers them.

Generational Wealth

Real estate is actually a generational asset. Generations pass by, but the wealth remains. It’s among those truly and tremendously long-lasting assets. It offers security for the upcoming generation, and no other wealth can match it.

Is real estate risk-free?

Real estate is pretty much risk-free, but just like every other thing, it also has a few drawbacks.

Illiquidity

As you know, property is not a liquid asset. Sometimes it may take a longer time to liquidate it and convert it to cash. Hence, if somebody needs immediate money, the illiquidity factor may cause them trouble.

Construction Risk

Sometimes an unreliable developer may play a fraudulent role or delay the construction. The most likely facts are poor quality work and delays.

High Upfront Costs

One initially requires a significant amount of money to invest in this sector. Most people may find it difficult to manage such an enormous amount of money.

Legal Paperwork Issues

Unclear land titles, fraudulent sellers, complex legal paperwork, etc, are always there to make things difficult for the investors. It’s not an easy understanding for everyone.

Management Cost

After the initial spending, the management cost is also pretty high. There is a cost behind maintenance, repairs, property taxes, etc.

Why is Real Estate the Best Investment?

Real Estate is definitely the best choice to invest with stability, tangibility, better return, inflation adjustment, historical resilience, and minimal risk. This investment will not only give you security and higher income opportunities through rent or resale, but also ensures generational economic safety, which no other investment can guarantee you.