New Delhi: It’s not just a matter of saving money.
In fact, there is a new form of real estate investing where you can get a big slice of the pie in the shortest possible time.
The trend is growing in India as developers and investors seek the fast track of real-estate investment without having to wait for approvals.
“In the last 10 years, I have invested about Rs 2 lakh crore in real estate projects,” said N. Srinivasan, the co-founder of real Estate Development Fund of India.
“My clients can do this in a day.”
What is real estate investment?
The term is usually used to describe investment that requires a high level of commitment and experience.
This type of investment is usually limited to buying properties for less than Rs 100 lakh.
In the past, the process of acquiring properties was done on a shoestring basis, with limited capital.
With a few exceptions, developers have moved to real estate investments over the last decade.
This is because real estate is more liquid and cheap than cash and real estate developers are able to access more of their cash.
Real estate investments can be done at a very affordable cost.
Developers can invest in up to 10 properties for about Rs 1.5 lakh, or two properties for Rs 2.5 crore.
They can also do a multi-unit development for up to Rs 20 lakh.
Investors can also put their money into real estate bonds or stock exchange-listed shares.
There are various ways in which investors can make a lot of money from real estate and real-time markets.
“Real estate is an asset class that is highly diversified and it is a very flexible asset class to invest,” said G.K. Ramachandran, founder and chief executive officer of Ramachandra Enterprises.
The investor’s investment in real-life properties has increased by about 25% in the last five years.
The average real estate transaction in the country is about Rs 500 crore per day.
Real Estate Development fund of India, which is backed by government investments, invests in about 500 projects every day.
“Our investors are buying properties on the cheap,” said Ramachanda.
“We are making a lot out of them.”
The investor, or owner, of the property, can also use the funds to finance construction of the properties.
Developers are also getting in on the act.
The real estate developer can buy land, construct a road, an office building or even a house.
“I have invested in a couple of properties, and then the buyer gives me a big chunk of money,” said A.S. Gupta, co-chief executive officer and founder of the Real Estate Development Institute of India and a real estate investor.
“I have done about 10 such deals in the past few months.
There is a huge demand for properties in Delhi, which has a large population.
There will be many more in the future.”
Real estate investment is also the mainstay of realtors.
A major factor in realtoring is the increased demand for luxury apartments in Delhi.
Developers have invested heavily in the construction of luxury apartment buildings in the city.
Real estate developers can get in on this market too.
There is also a demand for private residences, especially in urban areas, where there are few suitable rental apartments.
Realtors are getting into this market as well.
The real estate industry in Delhi is witnessing an increase in demand for housing as people want to live in luxury apartments.
This demand has led to developers and landlords getting into the business of renting apartments.
The demand for apartments in urban area has been growing as well and now real estate companies are taking up the job.
“As the city grows, the demand for space is going up and so is the supply,” said K. K. Gopalakrishnan, chief executive of Kala Ghat Real Estate.
Realtors can even sell their properties in a matter for months.
“They are looking to buy properties for more than 10 years,” said V.R. Ravi, president of Kolkata-based real estate firm Kala Kala Properties.
“So there is no need for them to be upfront about the investment.
Realty companies are looking at a longer-term investment strategy and the investments are making money as well.”
Realtoring in the Capital Region is also taking off.
Developers and landlords are now making their mark on the capital region.
Developers want to sell their buildings and apartments as well as develop more properties.
The city is also becoming a centre for the real estate market.
The average investment in a property in Delhi in 2017 was around Rs 1,100 crore.
The value of these properties has grown by about 10% in five years to reach Rs 8,000 crore.