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Top 5 Destinations for Real Estate Investment in India

Housing Finance Tips & Advice 28-12-2022 | 5 min read

Introduction

As per a Reserve Bank of India report, 77% of Indian households invest in real estate to create assets. This asset class provides several advantages, including strong potential for growth, high rates of return on investment, safety, and income stability. As a result, real estate is a popular investment choice for millions of people looking to build wealth and have a reliable income. 

You can easily expand your portfolio by investing in real estate. You can also fight inflation by making real estate investments. According to experts, investing in real estate for the long term, besides debt funds, mutual funds, and stocks, is a good decision.

While many real estate investment options are available, choosing the best city to invest in is always the most difficult decision. So don’t worry if you’re having trouble figuring it out. We are here to help you. This article will discuss the best cities for real estate investment in 2022.

Top 5 Cities to Consider For Real Estate Investment 

Bangalore

Bangalore is quickly becoming a popular location for real estate investment. Karnataka, as India’s capital, has significantly benefited from India’s IT boom. As a result, the city is home to many IT/ITES and MNCs, earning the title “India’s Silicon Valley.” 

Bangalore has become one of the top housing investment places because of its green spaces, pleasant weather, vibrant nightlife, and cosmopolitan culture. Over the last few years, Bangalore has seen a big rise in the rental and capital costs of business park facilities. Indira Nagar, Hennur, Yelahanka, Narasapura, and Whitefield are the most popular areas for real estate investors in Bangalore.

Pune

Despite its rapid growth, Pune has kept its reputation as a safe residential area. Pune is best known for its technology, industries, and extensive connectivity. 

Did you know Pune is now the only city responsible for 13% of the state’s GDP? Real estate sales increased by 75% in 2021 and are expected to grow exponentially in 2022. It also has good rental income and returns on real estate investment. People investing in areas such as Hinjewadi, Kharadi, and others are expected to benefit the most in the coming years.

Navi Mumbai and Thane

If you want to own cozy two- and three-BHK flats while living in Mumbai, you should consider Navi Mumbai and Thane. Navi Mumbai and Thane are tier 2 cities well-known for their large, reasonably priced real estate projects. Moreover, the areas are well-developed and have good public facilities like hospitals, schools, and recreation areas. Thus, you can expect a fantastic return on your real estate investment in a short period of time.

Hyderabad

Hyderabad is a city with a thriving IT industry, similar to Bangalore. Commercial real estate has increased as a result of the booming IT industry. Like all the other cities on this list, Hyderabad is known for its excellent infrastructure and public services. As a result, it is among the best locations in India to invest in real estate. The areas to consider for real estate investments are Gachibowli, Manikonda, Miyapur, and Kukatpally.

Mumbai

If you consider investing in real estate, Mumbai continues to be everyone’s favorite. Given that it has one of the world’s highest population growth rates, it is a good investment. The most elite areas in Mumbai are Bandra, South Mumbai, Worli, Juhu, and Andheri. Unfortunately, these areas are the most expensive in the city. It demands you to put down anywhere between Rs. 70 lakhs and Rs. 1 crore as a down payment. In spite of this, if you invest in one of these upscale areas of Mumbai, you can get a great return on your money in a few years.

How Can You Do Real Estate Investing?

There are multiple ways to invest in real estate. They are:

  • You can first buy a property with capital. Start by setting up a fund on your own or with others in your network. Assume a similar approach to finding and purchasing a residence. You can rent the property instead and take in rental income from the tenants.   
  • You can also put your money into a real estate investment trust. These are publicly traded corporations that own and manage real estate. As a result, shares can be purchased and sold just like any other stock. This is ideal if you have a small amount of capital to invest in an investment property. 
  • You can also invest in online real estate platforms. Most of these platforms are only available to accredited investors. They connect property owners and operators with investors planning to invest in real estate deals. If you have the time and the skills to fix up a property, you can even purchase, renovate, and flip it for a profit. 
  • If you already own spare homes or accessory dwelling units (ADUs), short-term rentals are an excellent way to make a little extra money. You have a lot of control over who gets the keys when renting out short-term rental properties overnight or during the week. You might also get more substantial returns compared to a typical residential lease.

Wrapping Up

You can easily profit by investing in other investment options, including recurring deposits, FDs, and mutual funds. But think about investing in real estate projects if you want to develop an asset. It is cost-effective and flexible. You can build on the land, sell off a portion of it and keep the rest for yourself, or sell back the entire property for a profit. 

Real estate investments usually do not incur any extra maintenance charges. So, what are you waiting for? Make investments in real estate projects and stay happy.

You can visit Piramal Finance and explore their products and services for more details.

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