How do I make the best real estate investments in India?
Real Estate Investment | By: TRC | 20 Mar, 2024
India is gaining importance on different international platforms and projecting a very positive picture of growth in terms of investment and a better future. Unlike various developing sectors and ventures, real estate takes the centre stage of development. This sector has many unexplored avenues and possibilities to make a fortune in a strategically planned way. It is not just any ordinary investment and then counting days to let it grow, but rather making a smart move and translating it into a more profitable avenue. This blog will help you understand what makes it the best real estate investment in India.
Define your purpose: Though real estate comes with various advantages and benefits, it is up to you to chart your priorities for greater benefit. Always remember that return is just the reward of your investment risk and is undoubtedly associated with all of the property solutions. However, one may be inclined to receive a greater return than others. Similarly, a few property solutions do not offer you ownership but a greater return than other property options. Which ensures a regular cash flow in your account. In addition, a few property options provide you with multilayer benefits, which means that you will not only receive a greater return but also be entitled to a greater value appreciation of the property, and so on. Rental property income can also be added to this list; however, it depends on the type, demand, population density, and other factors to drive the desired return.
Tenure matters: Since all property investments are considered long-term investments, they are not for those who are looking for short-term gain and peril their investment. However, different property solutions have different tenures and benefits. Properties and projects that are in the developing phase provide returns until they get operational. However, few property options provide additional returns even after being operational. And investment in various farmlands comes with benefits where you may receive not just the return but the buyback option, many fold property appreciation.
Surrounding: Before making up your mind to park your investment in real estate, look for the surrounding area. It will not only give enough pace to your investment but also ensure that it is secure enough. A property solution that has a location advantage, such as being aligned with the government's vision for development, an upcoming smart city, a commercial hub in the vicinity, an IT and electronic park, close to the SEZ, or a part of it, usually receives a greater return and property appreciation than others. In India, the fab is also directed to places of spiritual and cultural importance since the government has planned to restore the pride of such places.
Allied Industry Benefit: According to recent research data, Indian real estate is expected to grow at an 18.7% CAGR from 2020–30. However, this growth may be fueled by the growth of other allied sectors. Tourism, affordable health care facilities, and the hospitality sector are the prominent sectors that will provide enough thrust to the growth of the Indian real estate sector. Furthermore, the development of three prominent rail corridors will not only provide better connectivity but also help reduce transportation costs. The government’s initiative to infuse a Rs 11.11 lakh crore fund for infrastructural development and the establishment of roads and railways will also provide support for the growth and development of this sector.
Stable monetary policy: when most of the developed economies of the West and Asia are facing tough times. India has become a symbol of hope for entrepreneurs, corporate houses, and investors to plan their investments in India. Meanwhile, domestic investors can also experience a great time as the Indian Central Bank has not increased the interest rate, which will further keep on attracting home buyers to look for different property options without much worry for their pockets. Moreover, when the Lok Sabha election is just around the corner in India, the Indian government will not bring any fresh bills that will affect the growth of this sector. Similarly, recent research also proves that nearly 70% of women in India prefer real estate as their first investment. Relaxation in stamp duty for women is also the biggest reason for the growth and prevalence of this sector. In states like Himachal Pradesh and Delhi, women have to pay 2% less stamp duty, whereas Jharkhand charges only Rs. 1 from women for stamp duty.
Conclusion: The Indian real estate sector is expected to grow at a 25.60% CAGR during the years 2024–29. In addition, the Indian real estate market ranks in the top 10 globally for price appreciation. Moreover, it has enough potential and growth to support the logic that makes it the best real estate investment in India.