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The best real estate investment in India: things that must be kept in mind

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Real Estate Investment | By: TRC | 02 Mar, 2024

When it comes to investing, people are fascinated by the growth and dividends of their investments. However, a middle-class novice investor often thinks of securing his investment in the first place and then augmenting it. Unlike many other investment options available, real estate investment is considered less risky and growth-oriented. However, due to a lack of proper knowledge, acumen, and market insight, most people are not able to look at it as a golden opportunity and growth-oriented sector. In this blog, we try to figure out the best real estate investment in India.

The best investment option available: Even If you are fascinated by the great fortune that real estate investors enjoy, if you are a pessimistic investor who wants to earn a great return without risking his investment, or if you want to accumulate your wealth, there are various options available to be explored. Think of a moment and realise which category you fall into when you stumble upon the idea of investment. Different concerns require different solutions. It’s not like one size fits all.

Different property options have different rates of return, e.g., residential projects offer a 2-4% return on average, commercial projects offer a 3-5% return, and so on. However, a recent trend in real estate, i.e., theme-based commercial property, offers an 8–12% return in some cases. Besides, a few commercial properties also provide the benefits of a minimum guarantee and an assured return. This will also help investors who want to take advantage of this new trend and elevate their financial portfolio.

Investment tenure that matters: Every investment needs time to generate the desired yield, and property investment is not an exception. Few properties can generate income when they are sold, whereas few property options pay you at regular intervals. There can be plenty of options available to choose from. For example, many construction companies offer assured returns (AR) on their developing projects until they are operational. A few projects also offer a minimum guarantee (MG) after completion of the project. Similarly, a few property options not only provide AR but also come with buyback options. However, their lock-in period may vary from 5-7 years or more. One can choose the suitable option as per his requirements.

Growth that matters: Undoubtedly, every investment comes with potential risk, appreciation, or return. The only thing that matters most for the investor is the growth of their investment. However, a few property options give less return than others. In fact, property appreciation and growth are subject to the property's location and time. As an investor, it becomes important for you to choose a property that is growth-driven. One should choose a property that is developing in prominent locations or aligned with the government's vision; it will foster the value appreciation of your property. Secondly, one should invest in a property when it is in the developing phase and not wait to invest when the property is developed. because it will require more investment but slow the return.

Conclusion: Real investment has many advantages, and it becomes very important to look closely at the market dynamics and investigate the property thoroughly before making an investment. Always prioritize your options, and make it clear what you expect from your investment and how long it will take to deliver the desired result. The above-mentioned insight will help you navigate your investment to the right property option and guide you to find the best real estate investment in India.

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