India is one of the biggest countries in the world and has no shortage of land. Moreover, there is no decrease in the value of the same land either. This means that the real estate investment opportunities in India are up for grabs for residents as well as non-residents.
With the government’s recent “Make in India” reforms providing relief to the manufacturing industry, real estate is on its way to prosper. However, this assumption isn’t without due context. Over the last 15 years, India has attracted over $34 billion in investments. And this figure is just for the real estate sector. People from all around the world are realizing the potential that Indian real estate has shown in the last year. It seems everybody wants to buy property in India now.
According to the recent numbers by the Real Estate Investment Trust, Indian real estate market manages to be profitable. Although these are rough numbers, they do add up. According to REIT, with over 425 million square feet in office areas are spread across India. This amounts to a total of almost USD 52 billion. Moreover, if you bring that to warehouse spaces, the potential REIT area can be around 919 million square feet. This amounts to almost USD 28 billion.
There is no time like the present and this couldn’t be truer for real estate in India. It’s never been easier to start investing in real estate and here’s why. Home loan interest rates are hitting what could be their all-time low making it attractive for first-time buyers.
Secondly, the interest subvention of 30 percent allows you to have a mortgage of 15-20 years. The best part about this is that the interest rates are as low as 6%. A lot of developing projects in major cities like Pune and Hyderabad promise a lot of social mobility. Thus, a market for real estate demand is expected to raise the motivation to supply it.
The Stats Prove it:
The price-points of real estate haven’t exhibited much change in the last 4 years in the country. Factoring into this the annual inflation rates, one can conclude that the prices that the market is showing are discounted. Indian commercial real estate’s rental yields are some of the highest the world has seen in the past years. Although the residential real estate sector can get investors up to 2-4% yields on every property.
Commercial real estate, on the other hand, can get you anywhere from 8-11%, varying due to different factors. This means you can buy residential property for sale and go for commercial as well since both are profitable. The only thing with commercial real estate is the fact that it has regulations and restrictions that need to be met.
There are currently massive projects in place across the whole country that are transforming underdeveloped cities. Not only are these residential and commercial options feasible, but they’re also prospects for a great societal effect as well. India will see more modern housing and architecturally designed communities in the time to come.
This is also great for landlords and real estate investors as the government puts up a draft for rental laws. The law basically safeguards the investment and solidifies the tenancy laws while removing loopholes and increasing security. If you’re an investor looking to get into real estate for monthly rental returns, now’s the time.
You Just Need to Get Started!
The process of getting into the business is simple. You just need to start thinking about looking for real estate agents and consult experts to find the best location. Even though your options might vary with your investment capital, you can look around to your satisfaction.
The availability of property portals and online markets are great tools to use in order to search top real estate developers in India. All you have to do is research, find the property, get a good agent to get you through the legal work, and voila! You’ll be getting monthly returns in no time.