5 Ways You Can Invest in Real Estate

Our world is rapidly evolving and revolutionising the old – there’s no slowing it down! Until a few years ago, people struggled to haggle with vegetable vendors and shopkeepers for the best prices. Today, you can shop for fresh produce or groceries online and have them delivered home. No negotiations necessary! Though, that doesn’t mean that we have abandoned some cherished classics.

Much like paper media is irreplaceable, traditional investment methods firmly hold their ground. In India, real estate is one of the safest investment options that provides a great deal of appreciation in the long term.

The Latest Real Estate Scenario in India

In 2022, the real estate sector received $1,180 million in Q1. These figures spiked the growth by 98% quarter on quarter (QoQ) over Q4 2021, which received private equity investments of $597 million. Though impressive, it’s not surprising since the Indian real estate market is growing at an accelerated speed.

Previously, experts predicted that the market would surpass from ₹12,000 crores in 2019 to ₹65,000 crores in 2040. It would contribute to almost 13% of India’s GDP by 2025. With residential and commercial spaces steadily developing in cities across the nation, you seek investment opportunities in real estate. Additionally, receive tax benefits on long-term capital gain investments on residential properties under Sections 54 and 54F.

Looking to invest in tier 1 and tier 2 cities, or perhaps a region closer to home? Here’s a list of the top cities for real estate investments.

1. Navi Mumbai: The real estate trend will skyrocket once the international airport is complete
2. Pune: Contributing to 13% of the state GDP, properties in the city give high ROIs to investors and promise attractive rental incomes
3. Mumbai: Despite its exorbitant real estate prices, suburbs like Malad (West) and Goregaon ODC offer great opportunities for interested investors
4. Bangalore: The top reasons for real estate in this city include its expanding IT parks and manufacturing hubs, job opportunities and ease of living
5. Hyderabad: Being one of the most affordable cities in the country, its low cost of living and infrastructure is ideal for investors

But, did you know? There are various ways to invest in real estate, and most don’t require you to invest a significant portion of your wealth.

5 Ways to Invest in Real Estate

As traditional as real estate investments may be, there are diverse ways to invest in them! Some investors choose to rent out the property, while others put it up on sale during a seller’s market. Here are five ways to invest in real estate.

1.House Flipping

 Has an old property caught your eye? You could give it a makeover and turn it in for profit! With enough knowledge of real estate marketing, valuation and renovation, you could flip the house for higher returns. After tying up your capital for a brief period, it offers quick returns.

2. Real Estate Investment Trusts (REITs) 

If you want the portfolio diversity of real estate investments without the commitment, consider investing in REITs! Such companies own and operate real estate or related assets that generate income. These highly liquid investments allow you to earn without purchasing any property.

3. Real Estate Investment Groups (REIGs) 

Do you desire to rent out a property but are deterred by the stress of managing it? REIGs are companies that either build or buy a set of apartment buildings and allow you to purchase them as an investor. The company acts as a medium, and you’re part of the group.

4. Real Estate Mutual Funds 

Another great way to invest in real estate without purchasing an actual property is investing via real estate mutual funds. Like mutual funds, they allow investors to own a portion of the fund, and the company itself owns the investments made. It invests in the securities of real estate companies, distributing a large part of these funds in various real estate investments.

5. Rental Properties 

It’s the easiest way to earn a passive income or let your house pay off its home loan EMIs! You can fulfil your homeownership desires without your real estate investment sitting idle. Unlike the previous options, it requires managing the tenants and ensuring timely rental payments. `

Investing in real estate has never been easier! Whether you purchase it through REITs or for renting purposes, it’s the best way to diversify your portfolio. Curious about other ways to introduce some diversification? Visit Bajaj MARKETS and browse through a variety of investment options!