During the first quarter of the current fiscal year, the Indian real estate market faced a slowdown due to high inventory pile up and rising property prices. However, recent reports suggest that the country’s realty market is expected to grow at a rate of 30 percent over the coming decade. This growth is expected to affect residential properties, the retail sector, hospitality sector, and commercial properties. This article talks about the various investment options available in India.
Buy a Residential Property
Buying a residential property is one of the best investment options in India. When you are planning to buy an apartment or individual house, it is not necessary to purchase the property in the city you live in. From an investment point of view, it is always advisable to buy property in cities that experience maximum capital price appreciation. However, you should not risk buying properties in cities that are completely unknown to you.
In India, Mumbai and Delhi are the two most-sought-after real estate markets of the country. Since these cities have the best infrastructure and huge industrial establishments, a lot of people migrate to Mumbai and Delhi in search of work and a better standard of living. Hence, the demand for property in Delhi and Mumbai has seen a substantial rise.
According to CommonFloor.com, the average selling price of a property in posh localities of Delhi and Mumbai are Rs 11, 455 per sq. feet and Rs 22,590 per sq. ft. respectively. The capital price appreciation is estimated to be 44.4 percent per year. The real estate in Mumbai has been showing healthy signs of growth and Delhi real estate has witnessed equally positive development. This clearly shows that investing in a property in these cities will result in more than average profits.
Invest in a Rental Property
Cities like Delhi and Mumbai witness a huge influx of people due to the presence of many corporates and IT companies. Most of these people prefer renting a house instead of buying one. According to CommonFloor.com, the rent of a 2 BHK apartment in Saket, an upmarket locality in Delhi, is Rs 45, 538 per month.
When you are buying a rental property, you have to make sure that it is situated in an ideal location. Your property should lie in close proximity to hospitals, school, shopping malls, and restaurants. Also, the place should have adequate civic infrastructure and should be easily accessible from all parts of the city.
Purchase Commercial Property
The commercial real estate sector is expected to boom due to the presence of a stable government at the centre and an increasing demand for office spaces. In Delhi, around 33 percent of the under construction projects are booked for commercial space. A similar trend can be observed in Mumbai, where a lot of office spaces are coming up in areas, such as Andheri East, Parel, and BandraKurla Complex.
Buying a commercial property in cities like Delhi and Mumbai need huge investments. Therefore, the best way to earn a profit from your investment is to rent it out.
Since the country’s real estate market is set for growth, this is the best time for investing in India before the property prices go up.