PROPERTY INVESTMENT: HOW TO INVEST IN REAL ESTATE IN INDIA FOR BEGINNERS?

There are many people around who can share their property investment ideas with us. Almost everyone, at some stage in their life, has experienced a property dealing.

We’ve seen our parents, elder siblings, etc buy a property. it's enriched our knowledge. Even listening about property dealing from friends also adds to our knowledge domain. But nothing is more valuable than self-indulgence.

Which are those deeper insights about property investment which experienced buyers use as their guide? How a beginner can invest in land in India like a pro?

This is what we are getting to discuss during this article. But before that, lets’ refresh some basics about the property market in India.

Property Market of India

In the last few years, the Indian real estate market has faced major hurdles. Though RERA is now in place, this sector is not reviving.

Incomplete projects finished inventory, lack of demand, etc has contributed to the lackluster performance of this sector. But still, in major cities in India, prices of decent real estate properties are not declining.

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In the above table, it is clear that property prices continue to increase in India. The rate of price appreciation is different for different cities. If we buy a property in Hyderabad, capital-appreciation will be relatively slow. If we buy a property in Gurgaon, capital-appreciation will be faster.

But no matter where ever is the property located in India, its price will increase. Why? Because of the growing population and increasing purchasing power of the Indian middle class.

Cities like Mumbai, Delhi NCR, Bangalore, Chennai, Ahmedabad, Pune, etc have seen a healthy rise in property prices. Why? These are cities where people generally migrate from other states for jobs and business. 

The price momentum of Metro cities is reflected in other smaller cities. On average, in the last 5 years, property prices in India have at least gone up @5% per annum. In addition to this, add the rental yield of approx 3.5%. This takes the overall return to 8.5% p.a.