Investment Opportunities in India’s Emerging Real Estate Markets
In current era, India’s real estate market has experienced remarkable growth, as new hotspots have emerged across the country. Along with metropolitan cities that have dominated the real estate market, even Tier-II cities are gaining attention of homeowners due to improvement in infrastructure and job opportunities. This has given rise to increase in demand for both commercial and residential properties.
This emerging real estate market has provided greater opportunities to investors that are looking for higher returns, excellent wealth creation and diversification. Today we will talk about investment opportunities and the best strategies to take full advantage of it.
Why to invest in real estate markets?
There are various aspects to discuss here, that will make your investment in real estate a profitable deal. These aspects include growing infrastructures, property prices, increasing urbanization and supporting government policies.
Economic growth with job opportunities
Many of the growing cities have now become one of the powerhouses of India, comprising of various multinational companies, industrial hubs and financial institutions. With various job opportunities available in these cities, it is attracting skilled professionals from all over the country. Thus it is a lucrative opportunity for investors to buy property in these booming cities for good return over investment.
High demand and liquidity
The key reason to invest in real estate in prominent cities is the demand for properties will always remain at its peak. Many big cities experience influx of migrants, students and professionals and thus the real estate market in these cities always thrive for both buyers and renters. Also, you can easily sell the properties in big cities to enjoy the desired liquidity.
Superior infrastructure and connectivity
Infrastructure in many major Indian cities have now achieved a world-class level. With excellent highways, airports and other public amenities and metro rail systems, cities have become smarter than ever and this has increased the desirability of properties. Many companies are now investing across all the major cities of India, and this has again given a major reason for investors to buy property.
Steady capital appreciation
Real estate in big cities always experiences a steady rise with long-term cost appreciation. Due to lack of land availability and rise in demand, property prices tend to increase with time. All these factors are profitable for investors to invest in properties at prime locations for higher return over investment (ROI).
Stable market with less investment risk
Making investment in tier-I and tier-II cities is safe due to their stable economy, streamlined property laws and flexible real estate sector. Even during economic downtime, properties in prime cities will still have better values as compared to underdeveloped regions. This will minimize investment risks.
Rising commercial with luxury real estate market
In many big cities the demand for high-end residential properties, commercial real estate and co-working spaces is at the pinnacle. The emergence of global businesses has given birth to the demand of office spaces, retail establishments and IT parks. Luxury real estate also sees significant interest from high-net-worth individuals, thus making it a profitable deal from premium properties.
Favorable government policies
Reforms like Smart Cities Mission, Real Estate Regulatory Authority (RERA) and relaxed Foreign Direct Investment (FDI) has provided desired security and transparency to real estate investments. This has made the investors feel more confident while making any investment.
Types of real estate investment opportunities
Real estate investors can explore various market segments as per their risk appetite.
Residential Properties
Today, the demand for mid-segment housing in on the peak driven by urbanization and increase in income level. Making investments in residential properties present in developed or developing regions can result in higher ROI.
Trending residential real estate:
- Increase in demand for gated community for better safety.
- Rise in rental demand due to migration
- Buyers are giving priority to affordable housing projects.
Commercial Real Estate
With the growth in startups, professionals always remain in search of office and co-working spaces to give a professional touch to their business. Hence you can also invest in commercial properties for higher returns.
Key trends in commercial real estate:
- Increase in business parks and IT hubs
- Startup culture has given rise to demand for co-working spaces.
Industrial and warehousing spaces
With the increase in logistics, e-commerce and manufacturing units, investors can find good opportunities in industrial real estate. The demand for warehousing and logistics is increasing at a significant rate particularly in regions with excellent connectivity.
Trending industrial real estate:
- Emergence of e-commerce industry leads to increase in logistics hubs.
- Government initiatives to support industrial zones.
- Increase in requirement of automation and smart warehouses.
Investment strategies for emerging real estate markets
Investors must follow a streamlined strategy to enjoy maximum return with minimum risks.
Look for high-growth areas
Be smart and invest in locations with higher appreciation potential. You can identify such locations based on their infrastructure development, employment opportunities, population growth and real estate demand.
Invest in under-construction and pre-launch properties
All these properties have lower prices as compared to completed projects. Hence to increase your capital appreciation, you must look for reputed developer with an excellent track record and invest in their projects.
Believe in diversified portfolio
Instead of investing all your capital at one property, invest it in different asset like commercial, residential and industrial properties. This will improve your return.
Focus on rental yield and long-term appreciation
Check the rental return of the property before investing. Properties near educational institutes, business and industrial hubs enjoy greater rental value and an opportunity for you to get steady income in the form of rent.
Stay informed about government incentives and policies
Keep a check on government tax benefits, initiatives, and real estate regulations that can have an impact on market condition. Incentives like cost-effective housing schemes, reduction in stamp duty and tax deductions on home loans can maximize your investment returns.
Conclusion
Indian real estate market is full of opportunities for investors looking to grab some lucrative deals. Due to increase in infrastructure, job market and affordable homes in both Tier-I and Tier-II cities, investors can enjoy both short-term and long-term gains.
It is pivotal to emphasize on diversified portfolio, investment locations to take informed decisions. It’s the time to take advantage of real estate investment potential to earn desired profit. The Indian market will continue to grow and will shape the real estate landscape in future.
