Real estate helps in hedging against inflation

Mumbai, June 24: Real estate industry though hit hard by high interest rates, Niranjan Hiranandani feels that high rate of inflation might be a blessing in disguise as historically it has always attracted more investment into the sector.

“Historically, if you see, people used to invest either in real estate or gold to hedge inflation. Only in recent times people are investing in shares, but real estate is a long-term investment and so it is the best bet for investment when inflation is higher,” Hiranandani Construction’s Managing Director Niranjan Hiranandani said.

The higher the inflation, the more the depreciation of rupee and the costlier the properties. Thus when inflation is inching up, people should invest in real estates, the prices of which are certain to go up further, he said.