1. Direct Real Estate and Land Investments

According to Economic Times, Private Equity and direct real estate investment in India stands at $322 million in Q3 2022! These investments include buying/selling commercial, and residential properties as well as land. This is the simplest form of real estate investment as it mainly consists of a simple transaction between the buyer and seller (and broker, if any). That’s the biggest advantage of this type of investment. But buying the whole property and land can be a huge capital investment, and your funds might get tied up in the process. These are the reasons people are starting to prefer other types of real estate investment options in India.

2. Rental Properties

Creative individuals who have renovation abilities and the patience to supervise renters may find that owning rental homes is a terrific possibility. This technique, however, necessitates significant expenditure to cover initial maintenance expenses and offset unoccupied months. The benefits include regular income, property appreciation, and capital maximization through leverage. However, there are certain disadvantages to investing in rental property. Managing renters may be time-consuming, and volatility might result in lower revenue from prospective vacancies.

3. REIGs and REITs

REIGs are tiny mutual funds that invest in rental real estate. In a typical real estate investment group, a firm purchases or constructs a series of apartment buildings and then invites investors to purchase them through the company, therefore joining the group. Real estate investment groups (REIGs) are suitable for persons who wish to own rental property without having to manage it.

A real estate investment trust (REIT) is ideal for investors who are willing to invest in the real estate market without committing to a physical transaction. A REIT is formed when a corporation (or trust) utilizes money from investors to buy and run income assets. REITs, like any other stock, are traded on the main markets.

The upside for both REIGs and REITs includes providing regular passive income. But you should have proper guidance in these instruments as they are complex and risky ones.

4. Fractional Ownership

Small investors can buy physical real estate through fractional ownership as an alternative investment strategy. The platform establishes a private limited corporation for each commercial property advertised for investment. Through the listing, this corporation collects cash compared to the property's worth from investors and then purchases the property. Investors receive equity and rewards proportional to their investment. This overcomes the issue of a large capital demand. However, the concept is new, and there are only a few firms that provide fractional ownership. MyProp is happy to provide fractional ownership agreements to its clients in India! Contact us for more information!

The Concluding Note

Always remember to choose a real estate investment instrument based on your requirements and capabilities. We hope you were able to get a fair idea of the top real estate investment options available in India.