Introduction
The Indian real estate industry has evolved into a compelling arena of opportunities, capturing the attention of investors with its growth prospects. With India’s rapid economic growth, rising urbanisation, and progressive government initiatives, the real estate sector has emerged as an enticing opportunity for wealth generation.
The booming e-commerce sector catalyses various commercial real estate trends, enhancing the boost of industrial properties, office spaces, and warehouses.
- As per sources, Downtown and suburban office spaces emerge as the most appealing risk-adjusted prospects, and Asia-Pacific investors favoured digital economy buildings in 2022-23.
The proptech revolution has resulted in a fundamental paradigm change, providing investors with unprecedented deal and data visibility. This significant change has enabled investors to make more informed decisions. As a result, the real estate investment landscape is experiencing a fundamental transformation, opening doors to new and profound opportunities.
- A joint analysis by Colliers and Qdesq estimates that office space adoption will exceed 60 million square feet in metro and non-metro cities by 2023.
Reasons Why Real Estate Is The Best Choice Of Investments
1. Potential rental yields/ returns
Indian real estate is potentially known to garner higher potential returns/yields in the long run, benefiting investors. As per the Financial Express report, Tiers 2 and 3 cities are rapidly establishing themselves as real estate hotspots, with a booming housing market supporting overall infrastructural development. These cities will be competitive with metropolitan areas in the coming fiscal year (FY) 23-24, offering various residential and commercial investment options.
2. Diversification of investment portfolio & risk mitigation
Indian real estate is an excellent alternative for portfolio diversification and risk management, and it appeals to a wide range of investors, including NRIs. According to a survey in 2023, the Indian real estate sector will increase at a (CAGR) of 9.2% between 2023 and 2028. And, for a broad investment portfolio, 9% of NRIs prefer to invest in residential real estate, while 18% are strongly drawn to commercial real estate.
3. Tax benefits & long-term value
Several tax benefits and favourable Government policies have made Indian real estate a preferred investment choice. It offers Tax exemptions on long-term capital gains, a deduction for home loan interest and a deduction in property taxes, and a wide variety of tax benefits for rental properties.
4. Foreign Direct Investment Inflows
Real estate sector is the third largest sector in the FDI flow, and as per sources, with a promising trajectory, it is expected to exceed Rs 65,000 crore by the years 2024 and 2025. This growth will enhance innovative solutions across commercial, residential, and retail projects.
5. Potential for high returns on investment
With strong capital appreciation and consistent income from rentals, Indian real estate presents an exponential opportunity for maximising returns. In a nutshell, Indian real estate’s potential Return on Investment (ROI) has cemented its place as a preferred choice among investors.
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Wrapping Up
In a nutshell, Indian real estate is the preferred investment in India due to its good returns, portfolio diversification, and steady market growth. With supportive government laws and a thriving market, Indian real estate provides numerous opportunities for investors to capitalise on and achieve long-term financial success. Contact us today to explore the lucrative possibilities awaiting in the thriving real estate market.
FAQs
1. How does real estate investing contribute to financial security?
Regular rental income, potential capital appreciation, portfolio diversity, and the opportunity to leverage assets for loans or refinancing can all help to provide financial stability.
2. Are there any tax advantages to investing in real estate in India?
Yes, real estate investments in India offer tax benefits such as deductions for mortgage interest, exemptions from capital gains on property sales, and incentives for affordable housing projects, making it a tax-efficient investment option.
3. Is real estate a safe investment in India?
Because of its tangible nature, historically growing value, and capacity to generate monthly rental income, real estate is seen as a relatively safe long-term investment option in India.
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