Tuesday, November 19, 2024

Strategies to get maximize returns for your property investment

Contributing over 13% to the National GDP, and expected to cross $1 Trillion by 2031, this is the Power of the Real Estate Sector in India. Actually, Real Estate is not just an Investment Avenue in India but a financial and cultural milestone as well. If you want to grow your wealth and maximize your returns then Investing in Real Estate is one of the safest and most rewarding strategies. Let’s discuss some Investment strategies to maximize your returns.
Property Investment
Property Investment

Snapshot of Indian Real Estate Landscape

Favourable Government policies, continuous infrastructural development and urbanization helped exponential real estate market growth in India.
  • Market Size: In 2023, the valuation of the Indian Real Estate Market was $265 billion and it’s growing by 8.8% CAGR.
  • Housing Demand: The Urban population of India will be 600 million by 2031, hence creating a significant amount of demand for both affordable and luxury housing.
  • Office Space: A record 50.6 Million Square Feet of Office Space absorption in 2022 shows that Commercial Real Estate is becoming a more lucrative option for investors.

Area with High Growth

Which sector to invest in?? The answer is simply “high-growth regions”. Let’s see which sector gives the maximum return.
  • Residential: The government schemes like Pradhan Mantri Awas Yojna (PMAY) have boosted the residential sector. Reportedly 123 Lakhs Houses have been sanctioned under this scheme by 2024. And in Cities like Delhi NCR, Mumbai and Bengaluru the sales of Luxury Residential Properties are growing by 20% YoY.
  • Commercial: If we talk about Grade A Office Space, then with a rental yield of 6-10% Delhi NCR, Hyderabad and Bengaluru become the top markets. With a CAGR of 25%, the co-working spaces are catering to India’s Startup revolution.
  • Industrial: Tier 2 Cities are becoming the emerging hotspot and will grow by 35% in 2031, this growth is driven by enhanced e-commerce and the demand for warehouses.
  • Land and Plotting: North India is under Rapid Plotted Development especially Haryana and Rajasthan and with 12-15% Annual Returns Deen Dayal Jan Awas Yojna is gaining traction.

Strategies to get Maximize Returns

  • Under Market Dynamics: With high demand and limited supply, Residential property prices in Gurugram are increasing by 15% in 2022. Investors who entered early got a significant amount of return as well.
  • Leverage Government Schemes: India’s first listed REIT Embassy Office Part REIT has offered around 9% annual return since its inception and democratized Real Estate Investment. Pune, Surat and Indore are the top cities for smart city investment missions.
  • Infrastructural Growth: You know metro corridors are the best option for connectivity, that’s why Delhi and Bengaluru have been appreciated by 20-30% for the last 5 years.

Data-Driven Investment

  • Rental Yield: The Residential Rental Yield in India is just 2-3% but commercial yield offers 9%. Hyderabad and Pune are at the top with 10% of rental appreciation in 2023.
  • Tier 2 Cities ROI: Jaipur, Coimbatore and Lucknow are growing at the rate of 15-20% annually driven by increasing connectivity and affordable prices.

Risks Mitigation Strategies

If rewards are attractive in the Real Estate Market, don’t forget risks like market fluctuations, regulatory changes and other tenant issues.
  • To mitigate the risks, you need to diversify your portfolio across types of properties (Residential, Commercial and Industrial)
  • You can invest in REIT as well, which ensures a steady income.
  • Don’t forget to use professional real estate advisory services to study properties thoroughly.

The Road Ahead

  • No Doubt the Indian Real Estate Market’s Future is very promising and with the current urban expansion, govt. policies support and technology integration making its future more lucrative.
  • Environmental Conscious: We are the 2nd Largest market of green buildings. For those investors who are environmentally conscious, the Indian Real Estate Market is what you are looking for.
  • Digital Transactions: With the integration of Blockchain, the transaction has become smooth, transparent and more secure.

Conclusion

In India, Real Estate is always a potent option for wealth creation and maximising your returns. An investor can easily leverage data, focus on the growth regions, align with government policies and align with infrastructural trends to get maximum returns on his investment. This is the time to invest in India, whether you are investing in Residential, Commercial or Farmland. Make your decision and watch your wealth grow exponentially.

Wealth Creation Opportunity Seasoned Investors and Newcomers

Opportunity! The current Indian Real Estate Market is full of Investment Opportunities, particularly in North India. It has proven to be a resilient sector and appealing to everyone whether you are a seasoned Investor or a newcomer. However, it would help if you had some solid understanding of the Market Trends, the emerging growth sectors and other economic factors. Today, we’ll try to make you informed about some factors that help you make your decision in Real Estate Investment. The true data will back all the information here. So, let’s start.

Real Estate Investment
Real Estate Investment

Understand the Market Dynamics

Delhi, Gurugram, Ghaziabad, and even Delhi NCR are those regions that are consistently the first choice for Real Estate Investment in India by every investor. Ministry of Housing and Urban Affairs recently released some data that the Real Estate Sector in Northan India has grown by 12% approx. in 2023, which includes both Residential and Commercial demand. The highlights of this region are directly attributed to the improved connectivity, the presence of multinational companies and the urbanization in this area.

Key Growth Drivers:

  • Urban Expansion: The Core of Delhi is its Rapid Urbanization; this is creating demand for all the real estate projects here.
  • Boost in Infrastructure: The first thing every investor looks for is, Connectivity. Delhi Mumbai Industrial Corridor, Yamuna Expressway and other Highways are the Apples of the Eyes of every investor.
  • Government Schemes: In a report by JLL India, it is highlighted that government schemes like Pradhan Mantri Awas Yojna (PMAY) and Deen Dayal Jan Awas Yojna (DDJAY) have contributed around 40% to Residential Sales.

Choosing the Right Property Type and the Location

Evaluation of property type and the right location always aligns with the investment goals, it also helps in mitigating the risks and diversifying their portfolio.

  • Residential Properties: In 2023, the average Residential Property prices have seen a 9% hike, especially in cities like Noida and Gurugram. This significant growth and rentals yield steady returns in the residential sector is continuously attracting investors.
  • Commercial Properties: A report by CBRE mentioned that the annual Yield Rental Return for Office Spaces in Gurugram is 8 – 10%, which is higher than the Residential Investments. This simplifies why investors are more likely to invest in commercial properties in Gurugram and Noida.
  • Land Investment: For those who are looking for Long Term Investment, Land Investment is the best option. With the rapid expansion in every real estate sector, land investment has become a viable strategy. Investing in Farmland can yield substantial returns in 5-10 years.

Monitor Government Policies and Initiatives

Whenever the Government took any initiative it significantly influenced the Real Estate Dynamics directly. Regulatory Authorities like RERA (Real Estate Regulatory Authority) introduce transparency and boost investor confidence. Similarly, PMAY (Pradhan Mantri Awas Yojna) has boosted the demand for quality housing, that too at affordable prices. DDJAY (Deen Dayal Jan Awas Yojna) has made both commercial and residential investments more accessible, especially in Gurugram.

All these government initiatives have allowed investors to enter the promising Real Estate Market with full confidence and govt backing.

Mitigate the Risk Factor

In the last 5 years, the Real Estate Market in Northern India has delivered an average return of around 8 – 10%. But, if your investment is aligned with your financial goals, then it is very essential to consider the market volatility, maintenance costs and some other factors as well. Only then you will be able to calculate the ROI (Return on Investment) and mitigate the Risk Factors from your Real Estate Investment.

Key Metrics:

  • Capital Appreciation: The value of your property over time, you need to measure it regularly whether it is increasing or decreasing.
  • Gross Rental Yield: Important for your Rental Properties, it should be around 2-4% for Residential and around 8-10% for Commercial Properties.
  • Vacancy Rate: For commercial spaces, if the vacancy rate is high, it’ll reduce your rental income.

Timing the Market

The best thing about the North Real Estate Market is that you can predict the flow of the Market at some specific times because the trend here follows Cyclical Trends. It simply means, there will be a time when the prices will rise and will stabilize at certain intervals. History says the property rates in North India show stable appreciation for every 7 to 10 years. But from 2024 onwards, the growth rate is projected to be around 11%, all thanks to Urbanization and Infrastructure projects here. If you can monitor these factors, you will be maximizing your return by buying low and selling high.

Leverage Real Estate Advisory Services

The real estate market might feel complex and competitive, but here comes Real Estate Advisory Services to make a significant difference. If you can find an Expert Advisor or Advisory Company, that has local insights, can identify high-growth areas, and sometimes can assist you through the legal process, then you are done. Such Advisors help with all the buying, selling, and resale strategies, navigate the RERA Compliant Projects and ensure long-term capital gains as well. One such Real Estate Advisory Company is DLC Group (Delhi Land and Constructions LLP). Dr Deepak Gupta is here to guide you through all your Real Estate Investment needs.

Diversify Investment

Want to reduce the Local Market Fluctuation Impact? Simply diversify your portfolio and invest in multiple property types and locations. We mean, investing in Commercial Properties in Gurugram for high yield and for Residential Land, Noida is a growing region. If you are diversifying intelligently, it makes your portfolio consistent, even if one of your assets underperforms.

Conclusion

As we mentioned earlier, Delhi, Gurugram, and Noida present wealth-creation opportunities with strong growth prospects. However, your Real Estate Investment journey’s success hinges on your market study decision, the data, market trends, local regulations and most importantly diversification of your portfolio. If you are following these steps, you are going to maximize your returns for sure.

Saturday, November 9, 2024

Profitable Investment Opportunity in Jewar

Plots for sale in Jewar are attracting the attention of astute investors and homeowners alike if you're searching for a profitable real estate investment opportunity. This area is poised for exponential expansion in the following years due to its strategic location and close proximity to the new Jewar Airport. Jewar offers an alluring combination of both long-term rewards on investment and residential plots for building your dream house.

Investment Opportunity in Jewar

Why buy plots near Jewar Airport?

Due to its advantageous position and the development of Jewar Airport, also known as Noida International Airport, Jewar, a growing town in the Gautam Buddh Nagar district of Uttar Pradesh, has seen a significant increase in popularity. It is anticipated that this airport, which will rank among the biggest in India, making it a popular place to have a residential plot near Jewar airport will spark a boom in connectivity, infrastructure development, and economic expansion.

The airport announcement has spurred interest in residential plots near Jewar Airport, making this area one of the most sought-after real estate zones in the Delhi-NCR region. People are seeing this as an opportunity to invest in land today and enjoy massive returns as the area develops into a hub of residential, commercial, and industrial activity.

Advantages of Purchasing a Plot Near Jewar Airport

The plots available for purchase in Jewar are well-located, being adjacent to important thoroughfares like the Yamuna Expressway, which makes it simple to travel to Delhi, Noida, and Greater Noida. Businesspeople, working professionals, and frequent travellers will find the airport's location to be quite handy. Reasonably priced Investment: Residential plots near Jewar airport are now being purchased at a reasonable price because the real estate market is still in its early stages of growth. Plots in Jewar are significantly more affordable than land in surrounding areas like Noida and Greater Noida, and they also have a lot of promise for the future.

Infrastructure Development: The surrounding infrastructure is changing quickly as Jewar Airport gets closer to completion. This covers the construction of new highways, metro links, and educational, medical, and retail facilities. residential plot near Jewar Airport stands to gain from this developing infrastructure.

Long-term Appreciation: Over the ensuing years, it is anticipated that the value of your investment will increase dramatically due to the area's ongoing development. Purchasing a residential plot near Jewar Airport now could result in significant profits soon.

Residential Haven: Far from the bustle of the city, Jewar is quickly developing into a tranquil residential area. The residential plots near Jewar Airport are a great option for anyone wishing to build their dream homes in a calm, green, and tidy neighbourhood. You can live in a tranquil suburban area close to a large international airport, enjoying the best of both worlds.

The Prospects for Jewar Real Estate

Plots for sale in Jewar have drawn interest from a diverse group of investors, including developers preparing massive residential and commercial projects as well as individuals seeking personal use. The Jewar Airport's opening will result in a significant increase in the region's economic activity in the hospitality, logistics, education, and retail sectors. It is anticipated that these sectors would raise land prices through a domino effect, making initial purchases extremely profitable.

In addition, Jewar's proximity to other industrial projects and the impending airport will make it a major commercial hub. This implies that industries and enterprises will swarm to the area, driving up demand for both commercial and residential real estate. 

Important Things to Think About When seeing a Plot for sale in Jewar

There are a few important things to consider before buying a plot for sale in Jewar:

  • Legal Verification: Make sure there are no liens on the plot and that it has a clear title. Verify that the seller has provided all required paperwork, such as land records, mutation certificates, and local government approvals.
  • Location: Not every land close to Jewar Airport will be equally valuable. Search for residential plots for Jewar Airport that are easily accessible from major services like retail malls, hospitals, and schools, as well as those that are near future infrastructure improvements and well-connected by road.
  • Development Plans: Verify the local government and the plot for sale near Jewar Airport development plans for the region. Verify the zoning laws and any further developments in the infrastructure, such as the water, power, and sewer systems.
  • Reputation of Builder: If you're purchasing from a developer, make sure they have a solid track record of completing projects on schedule and in accordance with requirements. Examine prior customer evaluations and ratings to determine the seller's reliability.

Avoid waiting for the cost to explode. Purchase a residential plot for sale in Jewar today to ensure your place in this emerging real estate destination for the future.

In summary

Plots for sale in Jewar are a very desirable alternative for real estate investors and homeowners due to its strategic location, affordability, and potential for future growth. Now is the perfect time to invest and profit from this quickly developing location, as the Jewar Airport is expected to change the area.