The Indian real estate industry, that has been focused more in the residential and commercial properties, is now reaping the benefits of a gradual changeover. As developments are being witnessed in the economy, the aspects of investment in real estate property also changes. Investors are seeking more than the usual investments in real estate to more e-commerce and online trends that require property but are diversification and higher potential returns.
REITs Come Up in Full Steam
REIT is also giving an overhaul to the Indian market. There is no hands-on ownership required for investing in extensive income-generating properties through these investment instruments.
According to LC Mittal, Director of Motia Group, "REITs are making real estate available to the common man in India. Retail investors get exposure to commercial properties of top quality that were earlier available only to institutional investors."
Professionals handle REITs offering investors convenience, while the investment helps exposure to real estate markets and other property assets without the problems of management of the investments.
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Fractional Ownership: Relay of Investment
One more novel measure that is capturing attention is interior ownership. Through this model, clients who may not have sufficient resources to go for high-value properties can now invest in let’s say ‘a fraction’ or so of several pieces of property.
Keshav Mangla, from Forteasia Realty Pvt Ltd says, "With fractional ownership, India is changing the way investors look at real estate in the country. It is allowing people who belong to the middle class to invest in premium properties that were earlier only with a few investors and offering better returns than other ways of investing."
There is a rise in the number of platforms focused on these fractional ownership opportunities allowing investors to invest in several properties and in different geographical regions.
The PropTech Revolution
Technological change has found its way in real estate business as well bringing up new concepts in the process of investment. For instance, online resources known as crowdfunding portals can be used by many people in financing property development ventures.
Aman Gupta who is a director of RPS Group states, “There are proptech companies now shortening the distance between investors and real estate business opportunities. Real estate investment today is less complicated, clearer and relies on numbers which make it useful for young people who love technology.”
Real estate technology spurs all processes from virtual visiting of property to blockchain selling of property.
Niche Sectors: The New Frontier
With increasing nation growth, growth in the size of the real estate market is observed. Proper communications, commercial development and investment in market segments like senior community living appear as a step toward available investment alternatives.
According to Gunjan Goel, Director, Goel Ganga Developments, "There is stronger potential of specialization in future investments in Indian real estate. That is because investment in student housing, co-living and similar housing sectors apart from healthcare real estate tend to offer better returns than in other ordinary residential or commercial properties."
These types of real estate cover various sectors that address specific needs and are usually leased out under strong lease agreements hence assured revenues are realized.
Sustainable Real Estate: The Green Revolution
Of late there has been an increased understanding of climate change and other crimes against nature such as pollution and this has facilitated the development of green buildings and green real estate. In addition to creating a better world, these buildings also provide cost savings and enhanced valuation in the long term.
Purchases of solar standard houses, investments in solar community projects, and other green building real estate will appeal to those with a concern for the environment as well as those prudent in securing investments for their future.
Capitalizing in Urban Projects: Smart City Investments
Investment opportunity is seen in large-scale urban development initiatives such as the smart city projects in India. Investments in state-of-the-art technology as well as construction of real estate are made in these large city building projects.
From smart apartments to smart city, all these kinds of projects provide technology cum real estate which triggers the interest of the intelligent investors.
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The Road Ahead
As the evolution of India's property market attains greater heights, so too does the nature and scope of innovative investments. According to Aman Gupta, "There is one critical point in managing property today-known as adaptability. Investors must anticipate and comprehend the changes of the landscape which will look for something outside property ownership."
Even as these new routes of investment promise the wow factor, they also come with guaranteed risks. The notion of risk bearance regardless of what the new ideas of developing flat may change remain unabashed.
The real estate sector is set to witness new advancements as the Indian economy continues to develop and change further. Investors willing to step outside 'normal' thinking will find untold opportunities within the ever-changing property market, which in turn promises to create wealth while participating in India's growth story.
It will be also important to keep up with the trends, use the benefits of technology and be flexible with the new concepts of investing in order to take the advantage of the potential presented by the changing real estate scene in India.