Investing in real estate in India is the most profitable, least risky, and most effective way to build wealth. Everyone wants to provide a safe and secure environment for their family. Therefore, the real estate sector is thriving. Real estate investment is in high demand because it has evolved into an essential component of a financial investment portfolio. There are numerous real estate investment opportunities in India.
Read the article to know the types of real estate investment to be made and how to invest in REITs in India.
What is real estate?
When most people think of real estate, they envision bungalows and apartments, but it is much more than that. There are various types of real estate and numerous investment opportunities.
Real estate is made up of buildings and land on top of whatever grows on land. Because real estate cannot be moved as personal property, its values are determined by geography. Here are the various types of real estate investment opportunities available.
- Residential real estate
- Commercial Real Estate
- Industrial Real Estate
- Investing in Land
Residential real estate
Residential real estate is a term used for the place where we live. Residential real estate exists by laws stipulated by the state and central government in India. These regulations define the liveable space and building heights in a specific area.
It controls the things like whether it is a residential purely area or mix use of commercial and residential. The two ways to invest in residential real estate projects are to renting the properties for long-term investment or flipping properties for short-term investment.
If you are a homeowner, you are already a real estate investor. A home is a large asset owned by a homeowner. Along with other investment assets, the value of a home increases with time.
Commercial Real Estate
Shopping malls, restaurants, schools, healthcare facilities, and office complexes are all examples of commercial properties that most of us are familiar with. Investing in them is more expensive than investing in residential properties, but the profit potential is greater. However, if you are a first-time investor, selecting the right estate for investment may indeed be difficult. To be safe, you should seek the advice of a real estate investor.
Industrial Real Estate
Industrial properties are buildings and factories used for manufacturing and warehousing. They are typically situated far from the town to avoid polluting the residents. Investing in these properties may indeed be difficult due to the difficulty in predicting capital investment. Even though the property was recently converted from farmland to an industrial unit, its price will be much higher than the neighboring farmlands.
Investing in Land
The most common type of real estate is land, but it comprises undeveloped lots in the city. This is one of the most affordable and secure real estate properties in India. When you buy a piece of land for investment purposes, you don’t have to worry about theft, damage, or maintenance.
All the above types of real estate investment in India provide the most income potential due to long-term locked and lower costs. Industrial real estate, on average, tends to be lower vacancy rates than other kinds of property.