What is Real Estate in India - 2024

What is Real Estate?

Real estate is a form of real property that consists of buildings or homes permanently attached to land. The term 'real estate' means real (or physical) property.

The real estate sector in India is blooming at an exponential rate currently valued at $477 billion, just second to the agricultural sector, and contributes 7.3% to the country’s GDP.

Types of Real Estate

Real Estate consists of physical entities or property and could be characterised into 4 categories:

• Residential Property

  Residential real estate includes newly constructed or resale homes for residential purposes. Residential real estate includes studio apartments, residential apartments, 3 BHK flats, 4 BHK flats, and duplexes.

• Commercial Property

  Commercial real estate refers to those properties exclusively available for business or commercial purposes. It acts as a great investment opportunity in real estate with a promising high ROI. Commercial real estate includes retail shops, food courts, shopping malls, multiplexes, and office spaces.

• Industrial Property

  Industrial real estate refers to physical property that includes buildings and warehouses used exclusively for manufacturing, production, storage and research and development purposes.

• Plots

  Plots refer to the kind of physical property that includes vacant land being planned for the construction of a residential property or commercial property. Plots for sale could also include land for agricultural purposes.

Timeline of historic moments in Indian Real Estate Sector

• Post-independence Era (1947-1950s)

  The period saw a rise in population growth and urbanisation of cities like Delhi, Mumbai, Kolkata, etc.

• Economic Liberalisation

  This period saw a rise in commercial real estate with many MNCs setting up their offices in India increasing real estate business.

• Current Era

  Real Estate in India is growing at an exponential rate and currently contributes 14% to the GDP of the country.

What is RERA in Real Estate?

The Indian Parliament in 2016 passed the Real Estate (Regulation & Development) Act, 2016 which led to the foundation of the Real Estate Regulatory Authority (RERA) responsible for maintaining transparency in the Indian Real Estate Market and resolving the existing discrepancies and various other issues within it.

The Act gives provision to States/UTs to list out various specific rules and regulations to monitor the well-functioning of transparency between the real estate developer and the client.

Real Estate & Environment

Green development is a concept that is often associated with real estate in regards to the sustainable and environmentally-friendly development of residential properties and commercial properties.

Green Development is a broad term that includes various measures and certifications to ensure minimal effect on the environment like green infrastructure, LEED, conservation development.

Many of the leading real estate developers in India started taking measures to minimise the effects and getting LEED certified like Supertech Limited.

Why is Real Estate a great investment option?

With the estimated projection of the Real Estate Sector in India to reach $1 Trillion by 2030, Properties in India have emerged as the best asset in investment options promising a high ROI along with better rental yields.

The advancements in technology have driven the pace of the Indian Real Estate Market like never before with state-of-the-art architectural properties coming out from world-class developers like Paras Buildtech Pvt Ltd, Elan Group, Supertech Limited, Godrej Properties, etc.

Real estate investment provides promising capital appreciation due enhanced connectivity with many upcoming expressways of India like Yamuna Expressway, and Dwarka Expressway and international airports like Jewar Airport, and Navi Mumbai International Airport.

Various types of property offer an array of thoughtful amenities and facilities along with luxurious comfort and premium living in residential properties and commercial properties.

A lot of commercial properties for sale provide various options to invest in like retail shops, food courts, multiplexes, and office spaces exhibiting international brands as well as home grown labels curating various needs of the people and boasting a large footfall.

Alongside the rise in commercial space, residential properties for sale have emerged in the vicinity of commercial hubs offering 3 BHK flats, and 4 BHK flats in Noida, Gurugram, Mumbai and other parts of the country.

How to invest in Real Estate?

Investing in real estate provides a lucrative opportunity that comes with an array of perks like regular rental income, Tax benefits, hedge against inflation, price appreciation and potential for high ROI in future. Investing in real estate could yield maximum results if you clearly set your investment goals, understand market trends and do proper financial planning.

Also read: How to invest in real estate in India

Challenges & Risks in Real Estate

Investing in real estate comes with its own challenges and risk that needs due diligence from the client and consulting with the real estate consultants could help you understand and minimise the risks involved.

The challenges often faced by the clients in the real estate includes:

• It may includes financing risks

• Real Estate market is vastly volatile and relatively illiquid

• It may requires constant maintenance and management of the property

Factors to consider before investing in Real Estate

Investing in real estate requires due diligence and proper analysis of market trends and risk management. Seeking out professional assistance from real estate consultants could be of great help leveraging their expertise in the market.

MoneyTree Realty is the best real estate consultant in Delhi/NCR which comprises professional sales associates with top expertise in the real estate market. MoneyTree Realty’s property advisors offer a vast portfolio of commercial properties for sale and residential properties for sale.

MoneyTree Realty

MoneyTree Realty is the best real estate consultant in Delhi/NCR comprising professionals real estate sales associates curating various needs of the client in residential properties and commercial properties, and plots for sale with their expertise in real estate for over 14 years.

Under the leadership of Mr. Sachin Arora, MoneyTree Realty has emerged as the most sought-after player in the Indian real estate market with its client-centric approach maintaining transparency and providing top deals in luxurious residential properties and commercial properties and providing valuable insights on Real estate business ideas.

With an over present client base of 10,000+ happy investors and over 25000+ satisfying deals till date, MoneyTree Realty’s highly professionals deal with India’s top leading real estate companies like the M3M Group, Godrej Properties, Paras Buildtech, Experion Developers, Elan Group, Supertech Limited, House of Abhinandan Lodha, etc and offers a diverse portfolio that includes flats, residential apartments, villas, plots, duplexes, penthouses, studio apartments, multiplexes, farmhouses, commercial shops, offices, showrooms, plazas, and shopping malls.