Real estate investment in India is growing fast. In the last decade, it grew at a rate of 12% per annum. It now has over 200 million housing units and 40 million households in urban areas with a high demand for residential as well as commercial properties. India is now witnessing a boom in infrastructural development with the infusion of more than Rs 2 trillion into the country’s economy since 2014.
Indian investors are increasingly investing in residential and commercial properties, driving up prices across cities like Delhi, Bangalore, Hyderabad and Pune.
If you’re an investor interested in investing in real estate markets outside of your home country, this guide will teach you everything you need to know about real estate investment in India.
How to invest in Indian real estate
How do I start real estate investment in India?
You don’t need to be a first-timer to invest in Indian real estate. There are plenty of investors already doing the same thing.
We’ll start with a general overview of the Indian real estate market. This will include some well-known real estate markets in India and some lesser-known markets too. We’ll look at the current state of the market and the investment opportunities you may find.
Section 2: Key real estate markets
India has over 100 million households in urban areas and 2.8 billion in the country’s total population. Since India is growing so rapidly, it’s no surprise that the country’s overall population will nearly double to reach 1.5 billion by 2035. That’s 1.
Do your research
Before you start looking for properties to invest in, you should understand the real estate market in India. So the first and most crucial step is to do your research.
You’ll want to look into the state of the real estate market in India at the time you’ll be investing. It would be best to look into how long the market has been growing and how long it is expected to continue growing.
Develop a strategy
Once you have a good understanding of the real estate market in India and the state of the Indian economy, you’ll want to develop a strategy for investing in real estate.
One of the essential factors in investing in real estate is finding a great deal. Of course, you’ll want to find a great property and a great deal on that property. You can do this in a few different ways.
First, you can do your research and look for properties on the market for a reduced price compared to what they might be worth. Alternatively, you can also use real estate classified ads websites to search for properties on the market for a reduced price.
Get advice from a licensed professional
Once you have a strategy for investing in real estate, you’ll want to get advice from a licensed professional. A real estate investment professional can help you navigate the ins and outs of real estate in India and help you identify excellent properties to buy.
You can find a real estate professional to work with by searching online for “Real Estate Investment” or “Real Estate Broker” in your city. Alternatively, you can also speak to your friends and relatives in the real estate business or who have used a real estate agent in the past.
Find a great property.
After you have a strategy for investing in real estate and you know the regulations and requirements, you’ll want to find a great property to buy.
There are many ways to find excellent properties to invest in. The first is to look through real estate listings. You can also use websites like Quikr to view listings from individual owners. Another great tip is to look through real estate classified ads websites.
Get a mortgage for the purchase of an asset.
You can also get a mortgage to purchase an asset to help you finance the purchase of your first property. There are a few different options for mortgage financing in India, depending on your circumstances. You can also get a home improvement loan to help you pay for renovations.
Solve for transparency and accountability
While real estate investment in India can be a great way to build wealth over time, you should always keep in mind the following two factors:
- Transparency: Make sure you know exactly who you are working with when buying and selling real estate. It would be best to work with a real estate brokerage specialising in real estate investment in India.
- Accountability: Make sure you have proof of funds when buying and selling real estate. It would be best to work with a real estate attorney in India to ensure you have the required paperwork in order when you are buying and selling real estate.
Protect your wealth
While real estate is an excellent long-term investment, it’s important to remember that real estate is not a get rich quick scheme. Instead, it would be best to consider real estate an insurance policy for your wealth.
What is the economic situation in India?
There are 2,211 cities and towns in India and only 17 out of them qualify as tier-1 cities.
The economic situation in tier-1 and tier-2 cities has improved with per capita income growing from $851 in 2008 to $1,755 in 2013 and $2,135 in 2017.
Given the current situation, it’s not surprising that India is becoming increasingly attractive for investors. The World Bank estimates the GDP growth in India to be 6.7% for 2018, up from 5.7% in 2017.
There are many options for investing in the Indian real estate market. You can look at property listings in Indian cities like Mumbai, Chennai, Bangalore, Kolkata, etc. for your first steps into the Indian real estate market.
How to find a trustworthy seller or broker
According to real estate experts, you don’t really need to do much work to get an investment property. What you really need is the services of a trustworthy broker, that is, someone who will be able to find you a property and make sure you make a profit.
Your broker will advise you on which property to buy and then help you get it. The broker will also find properties for you, negotiate the price and arrange your finance.
There are a number of brokerages in India that offer this service. They tend to have agents who are familiar with the property market and can do the work for you. For instance, National Home Builders Service (nahb) has agents across the country.
Overall, if you want to invest in the Indian real estate market, keep your expectations realistic. If you want a successful investment, focus on cities with a thriving real estate market, good infrastructure, plentiful supply and a ready demand.
Demographics and high population growth in India over the past few years is leading to the emergence of new real estate markets in places like Bangalore, Pune and Chennai. Even relatively small cities like Coimbatore are witnessing a surge in demand and rising property prices.
There are now many good opportunities for investors outside of India in the short-to-medium term, so look for good opportunities in real estate to diversify your investments.