Among various industrial sectors in India, the real estate sector has been known to deliver promising returns to investors. In recent times, all types of investors including retail and commercial have shown immense interest in the real estate sector of India when it comes to investing to get a remarkable growth over time. This is because of the increased demand for both residential and commercial properties across the country. The real estate domain has faced considerable growth and demand due to various factors like increased per capita income, hopeful investors and their fast-moving lifestyles, and a sharp increase in these types of people.
The Indian real estate market is on the verge of growth and has become an active player in various remarkable investment portfolios due to its amazing return on investment (ROI) capacity. According to a recently launched report, 77% of the total properties of a typical Indian household belong to real estate. Hence, if you look forward to growing your wealth, it’s time to consider real estate investment in India.
Reasons That Make Real Estate A Profitable Investment Avenue
Though there are several burgeoning investment avenues in India to choose from, there are several pointers that make real estate the most sought-after investment boulevard.
Stability and safety
First and foremost, real estate investment tends to carry lower risks than its counterparts such as cryptocurrency, stock markets, etc. This sector is less likely to face recession in times of financial downturn, floods, inflation, pandemic, and others.
The real estate sector has shown amazing performance over the past few years. The introduction of RERA, the top real estate authority has brought in an increased level of confidence not only among property buyers but also investors as they are now assured that there is a governing body that looks after every single thing in the industry.
If we talk about the interest being earned on savings accounts or fixed deposits, the figures are quite low as compared to returns on real estate investments. Investing in real estate properties ensures steady growth over the amount invested along with lesser chances of facing downtime.
Extended capital appreciation
Another wonderful advantage associated with real estate investment is the long-term capital appreciation it comes with. Though short-term market changes may be normal, various studies indicate that real estate hasn’t faced any major downturn to date. Whether you invest in short term or long term, real estate sector is likely to help investors in wealth building, thereby providing steady income source for extended periods.
Government support
The Indian Government has launched a number of initiatives to give a solid push to the real estate sector, which are intended to help investors get the most out of their investments. Various yojanas like the Pradhan Mantri Awas Yojana (PMAY) and the establishment of Real Estate Regulatory Authority (RERA) have instilled confidence and transparency among the investors looking to invest in real estate.
Moreover, the government provides various tax benefits and subsidies to investors making it a wonderful option among both individuals and businesses.
Crowd funding and Real Estate Avenues
The rapid influx of various crowd funding and web-based real estate platforms has ensured seamless access to real estate investment. At present, all types of investors can become a part of diverse real estate projects even with trivial monetary contributions, that allows for higher levels of diversification and easy access to a wide range of opportunities.
Tax Savings
Home loans are known to be directly related to tax saving. First-time homebuyers can choose to save up to ₹1.5 lakhs on the principal amount of home loan under Section 80C, and up to ₹2 lakhs on the interest payable under Section 24. This benefit helps them reduce their overall investment cost and make the investment more reasonable.
Newer Technologies in The Real Estate Sector in India
At present, the real estate sector has been countering various digital technologies that are benefitting all including investors, real estate developers, property buyers and others.
Proprietary Data Analysis
In today’s emerging real estate investment landscape, data contains the new power! By leveraging the power of big data and artificial intelligence, investors find themselves in a better position to take sagacious decision. They are able to read market trends, forecast property prices, and even find out those concealed investment avenues. This data-baked approach not only instils high levels of transparency but also reduces associated risks.
Proptech Revolution
The proptech sector in India is experiencing a boom, with numerous entrepreneurs emerging with innovative solutions. Fintrackr’s data shows that between January 2021 and March 2023, over 29 real estate startups raised an outstanding $345 million, which added up to an astounding $2.4 billion in total capital. Platforms that facilitate seamless digital transactions, make property finding easier, and even provide immersive virtual property tours are responsible for this amazing rise.
AI and VR
Be it renting a property or buying a real estate property, artificial intelligence virtual reality are changing the way how things work in the real estate sector. This has also opened up new opportunities for both individuals and businesses across the country.
Blockchain
Blockchain technology is transforming real estate transactions and increasing transparency and security. Blockchain-powered smart contracts are automating the transfer of payments and property titles, reducing the time and expense associated with real estate transactions.
Investing in Real Estate
To begin with, perform detailed market research on the particular location you are interested in, check property rates, rental incomes, overall infrastructure development, and demand-supply system. Don’t forget to define precise investment objectives, and ascertain if you want capital appreciation, rental income, or a hybrid. Define a budget in association with your investment objectives and discover financing options if required. Now, basis the research, finalize the property that matches your investment goals
Prior to making any property purchase, carry out due diligence on the property and its owner or seller, guaranteeing all legal permissions, ownership labels, and project sanctions are appropriate. Moreover, don’t hesitate to get professional assistance from real estate experts, lawyers, and property consultants for better insights and supervision throughout the procedure. Try hard to close the best deal and finish the purchase, safeguarding all legal documentation’s authenticity and the property is registered in the buyer’s name.
If you intend to rent out the home, make the most of your rental income by managing it well. Remain alert by keeping a close eye on property performance and market trends so that you can make wise judgments down the road. Maintain it well and periodically check on its condition. Investors in Indian real estate might benefit greatly from a well-executed investment plan that provides both security and high profits.
The Conclusion
As India is rapidly reaching newer heights of success in almost every sector, the real estate sector is no exception. Whether you looking for a short-term investment avenue or a long-term one, the real estate sector promises wonderful investment opportunities to all types of investors from retail to institutional. However, doing certain things like proper market research, finding lucrative real estate assets, and having a clearly-defined are the basic building blocks of getting awesome returns out of your investment in the real estate sector.