Investment In Real Estate In India

Real estate in India is the second largest employing sector including construction and facilities management. Real estate investment in India is primarily a long term investment providing low liquidity to an investor. Investors can look at renting out their property to bring consistency in revenues. 

Indian real estate has huge potential in almost every sector especially commercial, residential, retail, industrial, hospitality, healthcare etc. However, the major developments in this sector in India are mainly the townships, residential units, shopping malls, offices, retail stores and commercial complexes.

In today's tough market, the Internet is playing a huge role in the buying and selling of and is an almost limitless source of information. However, it does not replace the experience and knowledge of an experienced professional.

The activity of real estate includes a wide range of activities such as development and construction of townships, housing and commercial properties, maintenance of existing properties etc.

Real estate has traditionally been an avenue for considerable investment per se and investment opportunity for High Net-worth Individuals, Financial institutions as well as individuals looking at viable alternatives for investing money among stocks, bullion, property and other avenues.

 Money invested in property for its income and capital growth provides stable and predictable income returns, similar to that of bonds offering both a regular return on investment, if property is rented as well as possibility of capital appreciation. The available investment opportunities can broadly be categorized into residential, commercial office space and retail sectors.

Any investor before considering real estate investments should consider the risk involved in it. This investment option demands a high entry price, suffers from lack of liquidity and an uncertain gestation period. To being illiquid, one cannot sell some units of his property (as one could have done by selling some units of equities, debts or even mutual funds) in case of urgent need of funds.

Although serious supply-demand imbalances have continued to plague markets into the 2000s in many areas, the mobility of capital in current sophisticated financial markets is encouraging to developers. The loss of tax-shelter markets drained a significant amount of capital from and, in the short run, had a devastating effect on segments of the industry. However, most experts agree that many of those driven from development and the finance business were unprepared and ill-suited as investors.

There is also a demand and need from different market players of the property segment to gradually relax certain norms for FDI in this sector. These foreign investments would then mean higher standards of quality infrastructure and hence would change the entire market scenario in terms of competition and professionalism of market players.

Overall, Real Estate is expected to offer a good investment alternative to stocks and bonds over the coming years. This attractiveness of Real Estate Investment would be further enhanced on account of favourable inflation and low interest rate regime.