Real Estate Investment: the right time, the right place – the higher appreciation

Mumbai, September 17, 2023 – ‘Top Investment Corridors in India’ – a latest report published by Colliers’ Advisory Services highlights how there’s never been a better time to leverage the full benefits of real estate investments in India. The report which put forth India’s strong position as a favored destination for international investments across various assets in the real estate sector, highlights factors such as combination of enhanced housing affordability, pandemic-era savings, health and wellness hygiene, favorable investment policies as key drivers that are triggering the housing demand across the country.

Delving deep, the report suggests that since the real estate sector continues to get traction, coupled with acceleration in infrastructure developments, micro-markets in India across major metropolitan cities are evolving as key investment corridors.

When it comes to the key benefits that are influencing the investment sentiment, the report suggests that with well-chosen assets, investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification—and it’s possible to leverage Real Estate to build wealth. Real Estate investors generate income through rental income, appreciation, and profits generated by business activities that depend on the property. Another factor is the high appreciation of land which is a lucrative proposition for investors to get better yields and returns, especially at a time when the rate of appreciation is much higher than it was few years ago.

Wealth creation and the opportunity to diversify are other reasons that are garnering interest from investors as by investing in land, there is a huge range of potential for monetization. The investor could just hold the land for long term, build a structure on it to lease out, have a holiday property and can earn pay-outs from there too.

Infrastructure development to boost real estate markets across top metropolitan cities

Though real estate as a sector depends on various internal and external factors, the development of Infrastructure and civic amenities help in the development of the city and impacts the real estate sector adversely. Infrastructure projects are socio-economic climates that serve as a conduit of investments and developments in real estate. Several factors such as employment, regional connectivity, accessibility to healthcare and educational facilities, safety and security, environmental sustainability, good governance, and socio-political stability are key growth drivers for investments.

“The micro-markets close to financial and industrial hubs in major cities of India are anticipated to gain more attraction in the upcoming years and holding real estate in these micro-markets is the key to securing and enhancing wealth for the smart investors. In fact, it is observed that the demand for Villas, farmhouses, plots, and land across key destination close to nature and proximity to metro cities have increased 2X post Covid-19,” said Umakanth Y, Senior Director & Head of Delivery, Advisory Services, Colliers India.

Emerging Investment opportunity at key tourism destinations

Investing in land and monetizing it in rental format gives 10 times higher yield than ready apartments. There has been a spike in demand for investing in land at a nature friendly location and across key tourism destinations. The concept of investment in serene locations has gained significant traction during the lockdowns and travel restrictions during the pandemic and is now on an upward trajectory.