Real estate has always been a major investment and investment opportunity for high net worth individuals and financial institutions, as well as for those looking for viable opportunities to invest money in stocks, precious metals, property and more over the alternatives to eBay.
Money invested in real estate for its income and capital gains provides a stable and predictable return on income, similar to bonds that offer a regular return on investment when the property is leased, as well as an increase in the value of capital. There is also a possibility. Like all other investment opportunities, investing in real estate involves some associated risks that are significantly different from other investments. The available investment opportunities can be broadly divided into the residential, commercial, office and retail sectors.
Real estate investment scenario
Any investor should consider the risks involved before considering investing in real estate. This investment opportunity requires a high entry price, suffers from a lack of liquidity and an indefinite start-up period. Being illiquid, a person cannot sell some units of his or her assets if there is an urgent need for funds (as could be done by selling some units of shares, debt or even mutual funds).
The term of the investment in real estate is unclear. The investor must also check the clear title deed specifically for investments in India. Industry experts argue in this regard that real estate investments should be made by those who have deep pockets and a long-term vision for their investments. From the point of view of long-term financial return, it is recommended to invest in high-quality commercial real estate.
The performance of the real estate market can be compared to the long-term performance of some equity and index funds. Any investor who wants to balance their portfolio can now look at the real estate sector as a safe way to invest with some volatility and risk. Thus, a suitable tenant, location, segment of the Indian real estate market and individual risk choices will prove to be key indicators to achieve a targeted return on investment.
The proposed introduction of REMF and REIT (Real Estate Investment Funds) will encourage these real estate investments from the perspective of small investors. This will allow small investors to enter the real estate market with an investment of less than Rs 10,000.
There is a demand from various market participants and a need for the real estate sector to gradually relax certain FDI standards in this sector. These foreign investments would mean higher standards of quality infrastructure and thus change the market scenario for all market participants in terms of competitiveness and professionalism.
Overall, real estate is expected to offer a good investment alternative to equities and bonds in the coming years. This attractiveness for real estate investment will be further enhanced at the expense of positive inflation and a low interest rate regime for Real Estate.
