Future of Real Estate Investment in India

Future of Real Estate Investment in India

By Ankita Patil
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Know More On Real Estate Investment in India

It is predicted that many favorable changes are going to be witnessed in the real estate investment sector in India. Some of the glimpses are reduction in the interest rates, easy availability of home loans, and development of trusts pertaining to real estate investment.

The construction sector is relaxing with respect to certain norms. This has led to the optimization of the real estate sector. It is predicted that in future, real estate investors would witness more interesting trends in the market.

Let us get an idea about these interesting trends predicted in the future.

Residential Plots – Ruling the minds of individual investors

Till date, investors were more interested in buying residential apartments. But due to the attractive building of residential plots, investors are moving towards this area. They are buying these plots with a view to secure higher returns in the future. These plots are also viewed as post-retirement homes by some of the investors.

Demand in the city outskirts

You must have noticed the construction projects in the outskirts of many metro cities. This has also resulted in the development of infrastructure and social provisions in those areas. Investors buy these flats or properties with a view that these areas will definitely develop in future. These projects are also enhanced with valuable amenities and facilities by the developers in order to attract investors.

For example, large complexes and built with lawns, gyms, jogger’s track, spas, gardens, playgrounds, temples, etc. Investors tend to look at the basic amenities such as inverter, lift, etc. But they are also not ignoring the luxurious amenities.

Heritage cities and industrial areas

Government is giving privileges for the development of heritage cities. Hence, construction projects are expected in these cities. Similarly, the areas around industrial projects are also expected to develop and turn into investment hubs.

Housing will be easy and affordable

The home loan facility has become easy and affordable for the investors. Most of the banks and financial institutions have facilitated ease in the process of obtaining home loans to be easy with competitive interest rates. In addition to this, tax incentives will also be available to the investors. The government is implementing initiatives for making homes to all the people across the country.

The size of the property will not matter

In earlier days, investors dreamed of buying large houses so that the big and joint families could fit in it. But this generation is of nuclear families. Moreover, the maintenance cost of large houses is also huge. Hence, investors would prefer small sized flats or residential plots. The buyers will also buy a house that is affordable, small in size and having less maintenance costs. Hence, in future, developers will concentrate on small property sizes. But in far-flung areas, where the property prices are relatively low, developers tend to construct large houses.

A boom for the smart cities

This world is of smartphones and smart cities. Hence, investors are also becoming smart. They are showing more interest in investing these smart cities marked by the government.

Conclusively, for a wide investor, real estate market will be an attractive and rational choice. The future trends in real estate investment are appealing enough for all the investors.

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Ankita Patil
Ankita Patil is Commerce as well as a Law graduate from University of Mumbai. She is a qualified Company Secretary from ICSI, New Delhi.

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7 COMMENTS

  1. Well said! Real estate is like a diamond whose value is always increasing. The two main factors responsible for real estate boom is, one. the increasing disposable income of the population and two, as rightly pointed out, the era of nuclear families. India has world’s largest young population with a huge potential to earn thanks to the educational qualifications. The present government’s efforts to set up more industries especially on the outskirts of cities will further proliferate the housing demand. Thus, it seems there is no dooming of this sector for the next decade or so.

  2. Totally agree with you Ankita. States where big industrial and huge infrastructure projects are coming up, are witnessing speedy growth. Investing in any type of property would be termed as a wise choice because it ensures good return on the property investments. The states which envisage big infrastructure projects Like Gujrat, Rajasthan., Maharashtra, Delhi, Up, MP, have witnessed insurgence of investment in real sector. If we can relate with the term ‘Boom’, it is because of the massive investment in Real Sector, throughout the developing India.

  3. Read this article and it makes perfect sense. I have recently been on a house hunt and i did figure that out. A lot of areas where there was not even a sign of houses are now transformed into beautiful townships. These days contractors are focusing towards providing a lavish lifestyle with all the amenities provided in the township itself. Right from inbuilt school to sports and play area to shopping markets and multiplexes. Best part is you can just walk from your home to any of these places. Developers are creating futuristic apartments to suit the investor’s needs. And investing in real estate is the best form of investment which will only reap profit.

  4. A golden future is in hold for Real Estate in India. A definite boom is awaiting the real estate investors here. It has in store a tremendous potential for rise. The above piece of content has thrown a light on this aspect and is definitely going to help investors in this field of business. Real estate has taken an upward course and its not stopping in the near future.

  5. I completely accept the views of Ankita. These days people are ready to buy properties of any size mostly in the outskirts. The reasons for this is low interest and high returns; classic architecture with all modern amenities and a chance to live in gated communities with peace. However, I would like to mention that the current generation prefers to buy plots or independent houses over apartments as the resale value of individual properties is always high. The resale value for apartments may reduce in due course due to age of the building; renovation constraints and small UDS provided to every individual owning a house in the apartment,

  6. Demand in city outskirts is a very interesting topic, with many people now choosing to live slightly outside of the city for extra facilities and comfort, at a lower cost! I personally live outside of the city and make the commute in, and it is definitely worth it!

  7. Real estate investment looks very lucrative and will surely grow in times to come. There are varied reasons ranging from political factors to socio economic structure of the society. Take for example the smart city concept or the development in the suburbs or the fringes of a metropolitan city. The breaking up of joint family with each unit holding a seperate house, does increase the demand for more resedential space.

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