Land vs Flat: Monetizing land gives 10x higher returns than ready apartments – Report

financialexpress.com:

Investing in land and monetizing it for rental income can give a 10x higher yield compared to ready apartments, according to a report by Colliers’ Advisory Services. The report titled Top Investment Corridors in India says that wealth creation and the opportunity to diversify are reasons that are garnering interest from investors as by investing in land, there is a huge range of potential for monetization.

“The investor could just hold the land for a long term, build a structure on it to lease out, have a holiday property and can earn pay-outs from there too,” Colliers Advisory said in a statement.

When it comes to the key benefits that are influencing the investment sentiment, the report suggests that with well-chosen assets, investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification—and it’s possible to leverage Real Estate to build wealth. Real Estate investors generate income through rental income, appreciation, and profits generated by business activities that depend on the property.

“Another factor is the high appreciation of land which is a lucrative proposition for investors to get better yields and returns, especially at a time when the rate of appreciation is much higher than it was a few years ago,” it said.

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Investors can simply hold the land for a long term and gain from price appreciation. They can also lease out the land or build a holiday property to earn rental payouts from there. Many investors are also building weekend homes, which are rented out for better rental yield.

According to the report, there has been a spike in demand for investing in land at a