subject: Property Investing: Higher Means Of Return [print this page] There are a lot of developments going on in the real estate sector that has
brought this unprecedented growth. A lot of people are investing in this sector due to its growth prospects and high returns. Investing in property in our country is a sure way to get higher returns. Tough sometime back, there was a slowdown due to the economic recession, but now the real estate market is going through an upheaval phase. According to industry experts, there has been a consistent growth in the properties scenario in India. The metropolitan cities as well as some smaller towns have seen a spurt in real estate development in the last few years. There has been an ncrease in the value addition in the lives of the people. After the slump due to recession, the real estate market is back on its toes. The maximum benefit is in the residential properties, these properties offering greater avenues and higher level of
scope. So planning to invest in residential properties is a wise decision which would generate huge amounts of profits. In addition to the growth of real estate in the country, there has also been a growth in the commercial sector and this growth has been noticed by the global leaders in the industry. Now international developers and investors are investing in real estate and also in other sectors in India. India is now in a better position as the economic equation with other countries has changed over the years and investors are viewing this country as a lucrative destination.
There is diversification of the portfolio as real estate returns have elatively
low correlations with other asset classes like stocks and bonds. Real estate is a
tangible asset which means it value is increased or its performance is improved by doing things on it. As part of a portfolio, by real estate one can have higher
returns for a given level of portfolio risk and also by adding real estate to a portfolio, portfolio returns can be maintained while decreasing risk. There are
direct links between the real estate returns and the rents that are received from
tenants. There are provisions for rent increases to be indexed to inflation in some
leases. Rental rates are increased when a tenant is renewed or a lease term expires in some other cases. In investor can maintain the real returns as real estate income tends to increase faster in inflationary environments.
by: Deepak Sharma
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