MAKING THE BEST OF REAL ESTATE
The real estate sector is one of the highly sought out sectors in India today. Almost every investor today seeks to invest some part of his asset allocation in the real estate sector to safeguard against any financial market fluctuations. Investing in real estate through home loan route not only gives the convenience of investing, but also tax benefits for the amount repaid. The re introduction of Real Estate Investment Trusts (REITS) and the influx of a vast number of affordable housing projects has meant that investors with limited capital can today look to invest in the real estate sector and be a part of the success story of the sector. Let us look at some of the factors that are likely to determine the future growth prospects of the real estate sector of the country in the coming years.
Affordable Housing: Affordable housing is going to be the biggest sunshine segment in the coming years as the government has already made it a priority sector. Not only is the government offering relaxation in FDI norms for international companies and investors seeking to invest more than 30% of their funds in the affordable housing sector, the vast majority of Indian population seeking a affordable house gives the sector sustenance and growth. The quantum of money to be invested in an affordable housing sector is less for the real estate companies as well as the investors and end users making it a win-win situation for all concerned. Real estate companies can finish projects with a lower budget while low selling price would mean people of all financial classes would be able to invest in the project.
Smart City Investment Opportunity: With the Narendra Modi led NDA government announcing its plans to build over 100 smart cities, smart city development is the next big opportunity for real estate manufacturers and investors. Some of the existing smart city projects have been witnessing a growth prospect of 10-15% annual increase with experts suggesting a much better long term investment prospective. Kochi Smart City, Gujarat International Finance Tec-City (GIFT) in Ahmedabad, Naya Raipur in Chhattishgarh and Wave Infratech's 4,500-acre smart city near New Delhi are some of the popular smart city projects that have already taken a lead with active investments from end users, investors and real estate manufacturing companies. For those seeking to invest with a long term prospective, investing in Smart cities is the best investment decision in the current market scenario.
Smaller Tier 2 and Tier 3 Cities Offering Immense Growth Potentials: Tier 2 and tier 3 cities have been offering far more real estate projects leading to a pan India growth. Some of the biggest real estate companies are focusing on smaller centers offering investment opportunities galore. With real estate prices in the metropolitan cities getting stagnant to an extent, expect for projects located the new industrial corridors the smaller centers are offering a great opportunity for both investors and real estate manufacturing companies. A large number of non resident Indians have also been supporting the smaller centers with active investment in NRI centric projects in smaller towns and cities.
Real Estate Investment Trusts (REITs): The introduction of real estate investment trusts (REITs) as announced by the finance minister Mr. Arun Jaitley in his annual budget speech is one of the positive factors likely to lead a positive impetus in the real estate sector. Real estate investment trusts (REITs) would not only increase liquidity in the cash strapped sector, it would allow end users to invest in the real estate sector from as low as Rs. 2 Lakhs and be a part of the real estate growth story. With SEBI finalizing the guidelines for REITs earmarking a minimum investment at Rs 2 Lakhs, people who were earlier willing to invest in the realty sector but did not have enough money to purchase a physical asset can now get involved in the real estate sector.
BANKBAAZAR.COM
The real estate sector is one of the highly sought out sectors in India today. Almost every investor today seeks to invest some part of his asset allocation in the real estate sector to safeguard against any financial market fluctuations. Investing in real estate through home loan route not only gives the convenience of investing, but also tax benefits for the amount repaid. The re introduction of Real Estate Investment Trusts (REITS) and the influx of a vast number of affordable housing projects has meant that investors with limited capital can today look to invest in the real estate sector and be a part of the success story of the sector. Let us look at some of the factors that are likely to determine the future growth prospects of the real estate sector of the country in the coming years.
Affordable Housing: Affordable housing is going to be the biggest sunshine segment in the coming years as the government has already made it a priority sector. Not only is the government offering relaxation in FDI norms for international companies and investors seeking to invest more than 30% of their funds in the affordable housing sector, the vast majority of Indian population seeking a affordable house gives the sector sustenance and growth. The quantum of money to be invested in an affordable housing sector is less for the real estate companies as well as the investors and end users making it a win-win situation for all concerned. Real estate companies can finish projects with a lower budget while low selling price would mean people of all financial classes would be able to invest in the project.
Smart City Investment Opportunity: With the Narendra Modi led NDA government announcing its plans to build over 100 smart cities, smart city development is the next big opportunity for real estate manufacturers and investors. Some of the existing smart city projects have been witnessing a growth prospect of 10-15% annual increase with experts suggesting a much better long term investment prospective. Kochi Smart City, Gujarat International Finance Tec-City (GIFT) in Ahmedabad, Naya Raipur in Chhattishgarh and Wave Infratech's 4,500-acre smart city near New Delhi are some of the popular smart city projects that have already taken a lead with active investments from end users, investors and real estate manufacturing companies. For those seeking to invest with a long term prospective, investing in Smart cities is the best investment decision in the current market scenario.
Smaller Tier 2 and Tier 3 Cities Offering Immense Growth Potentials: Tier 2 and tier 3 cities have been offering far more real estate projects leading to a pan India growth. Some of the biggest real estate companies are focusing on smaller centers offering investment opportunities galore. With real estate prices in the metropolitan cities getting stagnant to an extent, expect for projects located the new industrial corridors the smaller centers are offering a great opportunity for both investors and real estate manufacturing companies. A large number of non resident Indians have also been supporting the smaller centers with active investment in NRI centric projects in smaller towns and cities.
Real Estate Investment Trusts (REITs): The introduction of real estate investment trusts (REITs) as announced by the finance minister Mr. Arun Jaitley in his annual budget speech is one of the positive factors likely to lead a positive impetus in the real estate sector. Real estate investment trusts (REITs) would not only increase liquidity in the cash strapped sector, it would allow end users to invest in the real estate sector from as low as Rs. 2 Lakhs and be a part of the real estate growth story. With SEBI finalizing the guidelines for REITs earmarking a minimum investment at Rs 2 Lakhs, people who were earlier willing to invest in the realty sector but did not have enough money to purchase a physical asset can now get involved in the real estate sector.
BANKBAAZAR.COM
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