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The Indian real estate market is said to rise up to 9.3 Billion USD hence it is the right time to make real estate investment in India. There are a lot of opportunities and types of real estate to invest into. This blog has 7 types of real estate investment.

Types of Real Estate Investments In India

1. Residential Real Estate Investment in India

Residential real estate is the property which a person buys to live into or for rent income. These properties include houses, residential plots, apartments, builder floors and condominiums. These can be used for personal use or can be put up on rent to get a side rental income.

One can also put his property on platforms like OYO or Airbnb. This is a way too earn a short term rental benefit majorly on a per night basis. Secondly there is no issue of tenant eviction or maintenance. Leasing out property to other people and get a constant stream of income. Apart from rental income properties also appreciate over time making the return on investment high.

For residential real estate investment in India Delhi NCR, particularly Gurgaon is booming very fast, apart from this Mumbai, Bangalore and Pune are also getting many home buyers being the IT centers with great environment and infrastructure.

2. Mutual Funds Real Estate Investment in India

Real Estate investment in India has a high ticket value, hence everyone might not be able to invest and own a property. Real Estate Mutual Funds help people to pool their money with investment managers who invest in different properties and you can get the appreciation on your share.

Here your money is collected with other people and the fund managers use it to invest in different types of properties.the liquidity of these mutual funds is higher compared to the ownership of a property. This means you can sell your shares according to your choice and opt out. You can also diversify your portfolio while investing in real estate mutual funds and reduce the risk of failure.

The risks associated with this investment are also high. These investments are directly dependent on the market and hence might fail at unfavorable times. So one must keep their

3. Commercial Real Estate Investment in India

Commercial real estate investment in India is a very lucrative investment as it has a high rental and appreciation value. The risks associated with commercial real estate are also lower compared to other real estate as the lease is signed for a longer period and vacancy is also for a very short period.

Another benefit of commercial real estate is signing the triple net lease. This type of lease puts the burden of all types of additional expenses related to the property on the tenant. The expenses include property tax, insurance, and maintenance. Hence it keeps the owner worry-free.

If you want to invest in commercial properties you must do a thorough research to avoid any hurdle. The following things must be kept in mind before selecting the desired property, demand and supply, vacancy, tax, and rental income in that area.

4. REITs (Real Estate Investment Trusts) Real Estate Investment in India

REITs are a popular way of Real Estate Investment in India. The REITs are companies that buy income-generating real estate and you can buy shares in these companies and earn dividends and profit.  Here you can make a small investment and earn according to your pocket size.

REITs come under the supervision of SEBI (Securities and Exchanges Board of India) in India. SEBI is responsible for the proper functioning and accountability of  REITs. In these funds people can make small investments and enjoy the benefits of real estate appreciation.

The Embassy Office parks is one of the best examples of REIT in India. Its IPO was launched in 2019. The REITs contain 3 parts sponsor, the one who sets up the REIT. Then comes the Trustee, who manages the REIT and in the last is the Manager who oversees the procedures of the REIT.

5. InvITs (Infrastructure Investment Trusts) Real Estate Investment in India

InvITs InvITs are a great way for real estate investment in India. They are similar to the REIT but instead of investing in real estate, they invest in infrastructure projects like roads, highways , airports and so on.

The Income of InvITs is generated through tolls and taxes imposed on the users of the facilities of the infrastructure projects. For example the shops on a metro station or malls made on a bus terminal.

Just like REITs, InvITs allow you to invest in large projects with a small amount of money. They are also regulated by SEBI, which makes them a safe investment option.

6. Farmhouses and Agricultural Land

A farmhouse is a residential building located on agricultural land. People often buy farmhouses as weekend homes or to enjoy a peaceful, rural lifestyle. These properties are usually built to house livestock or store farm produce.

Farmhouses offer a great opportunity to diversify your investment portfolio. You don’t need to convert the agricultural land to build a farmhouse, but you cannot use it for commercial purposes unless you get the necessary permits.

Agricultural land can also be a valuable investment. Although it’s not considered real estate, you can convert it to non-agricultural use and make it a part of your real estate portfolio. If you plan to use the land for farming, you can grow crops, practice organic farming, or rear cattle.

There are several advantages to owning agricultural land:

• It creates long-term wealth.
• Income from farm produce is tax-free.
• The land doesn’t depreciate.
• Agricultural land acts as a hedge against inflation.

However, there are certain things to be aware of. You cannot use agricultural land for commercial purposes without converting it. Also, before buying agricultural land, make sure to check all legal documents, such as title deeds and revenue records, to avoid any legal issues.

Conclusion: Diversify and Plan Wisely

There are many oppturnity in real estate investment in India

Whether you want a steady income from renting residential properties, are interested in the flexibility of REITs, or want to invest in commercial spaces, real estate can be a valuable addition to your investment portfolio. Remember to diversify your investments to spread your risk and maximize your potential returns.

With careful planning and market research, real estate investing can help you build long-term wealth and financial security.

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