Top real estate investments for your FY 2025 portfolio
Explore the resilient growth of India's real estate sector in 2023. Understand investment opportunities like renting, holiday homes, REITs, and shared ownership of large properties.
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In 2023, the real estate sector stayed strong despite changes. The global economy bounced back, making people in India want to buy homes because interest rates were low and people liked the idea of living in smart, luxurious places. India's fast-growing economy, driven by private spending and investment, makes real estate investment a popular choice.
Usually, Indian families put 77% of their money into real estate because it can grow a lot, give good returns, and bring in steady money. Plus, new rules from SEBI about owning a small part of a property and small REITs mean the real estate market might grow even more in 2024.
But, it's not easy to figure out where to invest because of government rules and changing rates. So, let's look at some Investment Options to invest in the Real Estate Market.
1. Renting Properties - This means buying homes to rent out. It's a common way to make money, but it needs a lot of money at the start, and you have to keep paying for upkeep. Luxury rental properties in big cities like Mumbai and Bangalore are doing really well, growing in price by 4% to 7% every year.
2. Holiday Homes and Flipping - Rich people are buying more than just one home. They're buying second homes, too. After COVID, the demand for second homes in India went up a lot. People are also fixing up homes and selling them for more money.
3. REITs and ETFs - These are like buying a piece of many properties all at once. They're good if you want to invest indirectly. REITs are like a group fund that buys properties. They give out some of the money they make to investors as dividends. They're good because you can get your money back quickly if you need it.
4. Sharing Ownership of Big Properties - A handful of people put money together to buy a big property, like an office building. It's good because it's less risky, and you can share the money it makes. This way, you can invest less money but still make a good profit.
The best way to invest depends on how much money you have, how quickly you want to get your money back, and how much risk you can take. Property portfolio diversity adds another layer to consider. Fractional ownership of big properties seems like a good choice for making a lot of money in the long run.
