Building your FY 2025 portfolio? Here are 5 real estate investment options
In 2023, the real estate sector showed resilience amid changing trends. Global economic recovery drove up demand for residential properties in India, thanks to low interest rates and a preference for smart living and luxurious ownerships. With India's status as one of the world's fastest-growing economies propelled by private spending and capital buildup, the real estate sector remains a top investment choice.
Typically, Indian households allocate 77% of their assets to real estate as this asset class offers potential for high growth, strong returns, and secure income streams. Moreover, with SEBI's new directives on fractional ownership and small REITs, the sector is poised further for significant expansion in 2024.
However, navigating the real estate market and choosing right investment outlets as per current government regulations and rates, can be daunting, especially for newcomers.
Also Read: Income tax strategies for real estate investors: Maximising deductions and minimising liabilities
This article explores diverse real estate investment options suitable for various investor profiles and risk appetites.
The traditional approach involves acquiring residential properties for rental income. While straightforward, this method requires significant upfront capital and ongoing maintenance costs. Before investing, ensure the property is free of legal issues. Acquisition options include leasing, outright purchase, or financing through loans.
Notably, there's a rising trend of investing in luxury rental properties, especially in major Indian urban centers such as Mumbai, Delhi, and Bangalore. Industry data indicates that luxury residential real estate in these cities consistently surpasses other traditional assets,
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