Wealth Guide: Real Estate - Is It A Great Choice For Investment? Expert Suggests This

Wealth Guide: Real Estate: Investment is one of the key capital appreciation solutions available today. While planning finances, investments play a vital role in an individual’s life. Since time immemorial, there have been several avenues open for investment and real estate is one of the crucial among them. Investing in property is not a new phenomenon; in fact, traditionally property investment has been one of the popular choices. However, with time real estate investment has evolved opening up a variety of new concepts and properties for investors. Ashish Narain Agarwal, Founder & CEO, PropertyPistol.com, explains why Real Estate Is A Great Choice for Investment.

"Buying or investing in property is considered a benefit, especially after the COVID period as people have realized the need for larger spaces to accommodate various professional and personal needs of family members. The raised aspirations, enhanced lifestyle, and increased purchasing power are encouraging people to choose property buying as a major investment. The real estate market has been showing signs of revival with a variety of project launches, investments from foreign entities, and bigger real estate brands expanding their presence within the country. A recent Colliers India report suggested that institutional investments in Indian real estate rose 14% annually to USD 2.6 billion. The interest in the Indian real estate has soared so high that although investors have numerous avenues available for investing, real estate is considered a conventional and smart way of investment," says Ashish Narain Agarwal.

"Investment is not a risk-free process and hence it is better to gain knowledge about the asset class. Investors need to base their decision on their financial appetite. If approached appropriately, a real estate investment can be a profitable and reliable investment to generate considerable profits. Also, real estate can open up create regular income flow through renting, and joint partnerships and provide exceptional benefits like tax rebates, diversified portfolios, and less threat," Agarwal added.

"Although, real estate investment is an expensive affair, a substantial amount can be paid first and in parts later. Property investment has a great earning potential as it can assist in regular monthly income in the form of liquid cash. The structured tax benefits for a variety of property investments are highly beneficial for the investor. Volatility plays a key role as other investments depend on market conditions while real estate is remotely safe and does not fluctuate repeatedly," he explained.

"Presently, the real estate investment is not restricted to only renting out the property but has also extended to varied portfolios and concepts. Real Estate Investment Trust (REITs) and fractional ownership are two most popular concepts worldwide that is gradually gaining ground in India. REITs are companies that own and manage income-producing real estate for investors. Fractional ownership is the model in which various parties invest in a fraction of a property and share the profit gained out of it. This is a very effective investment option as there is no heavy investment of money by a single investor and is a great way to mitigate the risks associated with high-tangible assets," he further added.

"The Indian real estate market offers diversified assortments of apartments, villas, condos, gated communities, and plotted developments to cater to various preferences of investors. All these properties offer both short as well as long-term income depending upon parameters like the nature of the transaction, size of the property, location, amenities available, etc. The real estate industry has witnessed several alterations and transformations over the years. The global recession in 2008 with economic crisis later and COVID-19 induced pandemic among others, were some of the setbacks; however, the sector has stood resilient throughout. Post-COVID, the sector has been robust and gaining momentum with new properties and avenues coming in for investors. The opening of new peripheries and revamping of old locations have introduced great choices and varieties for the home buyers. The favourable government policies, strong infrastructure, and mixed-bag developments have widened the horizons of the already booming real estate industry," he concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)