Inflation is the increase in the prices of goods and services in an economy due to an increase in demand and low supply of commodities. Inflation can also be translated to a decline in the purchasing power of the economy. Inflation can be caused due to factors like a rise in production costs, a rise in demand, fiscal policies, or money supply.
At the time of inflation, the price of almost every commodity increases. Hence the interest rates and the prices of assets will also increase. Many commodities can benefit you in times of inflation. Certain securities, bonds, stocks, energy commodities, and real estate prices appreciate during inflation. Investors look for such commodities to invest in during inflation. These assets increase income flow which eventually improves the purchasing power.
How did the pandemic cause inflation in the Indian Economy?
The 2020 pandemic of COVID-19 left a great impact on the economies worldwide. All the supply chains were affected because of the lockdown. The Indian economy was no exception, COVID-19 not only affected the prices of commodities but also highly influenced the purchasing power. The city workers who shifted back to their hometown in 2020 and returned in 2022, had low incomes and couldn’t regain spending power due to rising prices.
As a result, the Consumer Price Index (CPI) inflation rushed and remained above 4% for 43 months in a row. Last year, the RBI failed to meet its declaration after average CPI inflation ranged outside the 2-6 tolerance band for three-quarters straight which further affected the Indian Economy.
How can your commercial property in Mohali provide a hedge over inflation?
Purchasing a commercial property in Mohali can safeguard you against inflation. An asset like a commercial property in Mohali has intrinsic value. During inflation, your property in Mohali will benefit you with an appreciation of assets and an increase in interest rates. However, there are many reasons why your commercial property provides a hedge over inflation. But the main reason that has been centrally focused is the rental income.
There will always be a demand for properties in Mohali, regardless of the economic situation as it is one of the growing sectors with developing infrastructure. With an increase in demand, your investments in the real estate sector in Mohali will certainly be fruitful for you. You can gain a lot of returns in the form of capital gains and rental income. This is possible because with the inflation rate increasing, the investors can demand a higher rate of rent and gain more profits. That is why a lot of investors are attracted to commercial properties in Mohali to yield great returns.
Also, we have seen a trend that during inflation, the economy tends to shift to rental properties. This is because a lot of small businesses won’t be able to invest readily in heavy investments that property demands. So the business will look for options with affordable rents. It is certainly a great time for investors to invest in commercial properties in Mohali and cater to this demand. From an investment perspective, this increases the chances of better liquidating your commercial property in Mohali.
Inflation is a quiet thief that deteriorates the purchasing power of the economy. But regardless of inflation, there will always be a demand for suitable properties in Mohali. This demand for commercial properties in Mohali has surged due to the growing infrastructure and the prime location of the projects by the VCS Promoters and Developers. Your investment in commercial properties in Mohali can help you create a shield against inflation. Investing in properties in Mohali can be fruitful for you and earn great profits for you.
VCS promoters and developers invite you to invest in these Projects to earn great returns in the future. The vision of VCS promoters and developers is to provide a luxurious space that redefines elegance to create iconic addresses in Mohali.