4 New Real Estate Investment Options In This Festive Season

This festive season offers real estate investors a chance to investigate fresh growth opportunities. As we approach this joyous time of year, the real estate market offers stimulating investment prospects that may satisfy a wide range of investor tastes. The festive season is a convenient chance to invest in fractional ownership of commercial real estate in India. Real Estate Investment Trusts (REITs) in India and other festive celebration-related investment alternatives are just around the corner. Real estate still shows itself as a strong and attractive financial option as we approach the festive season. During India's festive season, keep this in mind: make an investment in something you haven't looked at previously. One such investment is real estate, which is involved in data centre development and exploration. Here is a guide on investing in real estate for the festive season in 2024.

Importance of Real Estate Investments In Festive Season

This festive season presents an opportune time for real estate investors to explore new avenues of growth. The market is witnessing a shift towards strategic, diversified investments, allowing individuals to optimize returns while building long-term wealth. As we embrace the festive spirit, investors are keen on exploring innovative real estate options that not only promise high returns but also align with sustainable development goals. From green buildings that offer energy-efficient living spaces to co-living and co-working spaces catering to the changing lifestyle preferences of millennials and Gen Z, there are a myriad of opportunities for smart investments, as per Mrinaal Mittal, Director, Unity Group.

Additionally, Tier 2 and Tier 3 cities are emerging as hotspots due to infrastructural development and rising demand for affordable housing. The festive season's offers, discounts, and government incentives further enhance the appeal of investing in real estate now. Investors should carefully assess the market trends, potential for growth, and regulatory changes before committing to any property, as well-chosen assets can provide financial stability and growth for years to come, according to Mrinaal Mittal.

Here are four emerging real estate investment options this festive season:

1. Co-living spaces for young professionals, catering to their need for flexibility and community living.
2. Green buildings with a focus on sustainability, offering eco-friendly and energy-efficient solutions.
3. Affordable housing in Tier 2 and Tier 3 cities, driven by growing urbanization and infrastructure development.
4. Commercial real estate in tech-driven business parks, benefiting from the rise of IT hubs and remote work trends.

Long-Term Growth Potential

As we enter this festive season, the real estate market presents exciting investment opportunities that can cater to diverse investor preferences. With the surge in demand for residential properties, we are witnessing four noteworthy investment options this year. First, luxury apartments in urban centers offer a blend of modern living and convenience, attracting both homebuyers and investors. Second, integrated township projects are gaining traction, providing comprehensive amenities that promote community living, said Manoj Punamiya, CEO of Royal India Corporation Limited (RICL).

Third, co-living spaces are emerging as a viable investment, appealing to the younger demographic seeking affordable yet quality accommodation. Finally, the trend towards sustainable housing solutions has opened avenues for eco-friendly developments, aligning with growing consumer awareness of environmental issues. Investing in real estate during this festive season not only allows individuals to capitalize on attractive market conditions but also provides a sense of security and long-term growth potential. At Royal India Corporation Limited, we are committed to guiding our clients through these opportunities, ensuring they make informed decisions that align with their financial goals, stated Manoj Punamiya.

How Does Fractional Ownership Play An Important Role?

During this festive season, an opportunity to invest in commercial real Estate's fractional ownership in India is handy. New technologies are allowing investors to possess parts of premium office spaces and retail stores in the large metropolitan areas of India with minimum investments of INR 25 lakhs. This business model will allow many more individuals to invest in high-paying assets that were not possible due to their high market value for a single person, said Keshav Mangla, General Manager Business Development, Forteasia Realty pvt ltd.

Considering the fact that India's commercial real estate market has shown a great recovery post-pandemic, fractional ownership means steady rental returns and opportunity for capital growth. It's a good way to extend horizons beyond residential property investment in the Indian market. Nevertheless, we should note that such investments are illiquid in nature. The property and the platform should be thoroughly analyzed before engaging, and be able to match your risk appetite and financial goal, Keshav Mangla further added.

Investment In Real Estate Investment Trusts (REITs)

Festive celebrations are around the corner and so are the options for investing including Real Estate Investment Trusts (REITs) in India. Given that several REITs are already on Indian stock exchanges, investors do not have to outlay a large capital base, in fact, with a minimum investment of about 10000-15000 INR commercial investments can be availed. REITs in India combine the benefits of investing indirectly in real estate with an emphasis on liquidity, fund management and payment of a regular income in the form of dividend payouts. Such schemes normally cover grade A offices in key areas across major Indian cities, said LC Mittal, Director, Motia Group.

As the recovery of the economy can be noted, the demand for more affordable and quality office spaces is expected to rise which is likely to be good for the REIT investors. But bear in mind that Indian context REITs are also prone to market risks and sector-based risks. There are better ways of looking at them - as a part of an integrated approach stressing risk aspects of the Indian market, LC Mittal further added.

Investments In Construction Projects

For investments in construction projects, this festive season, target student housing projects which is a fast-developing niche in Indian real estate. Purpose-built student accommodations (PBSA) are also capturing investors' interest due to the burgeoning student population in the country and increasing urbanization. Extra careful investment considerations in such properties located within the vicinity of major educational centres in tier-1 and tier-2 Indian cities promise regular rental income with appreciation potential, said Aman Gupta, Director of RPS Group.

The temper of asset-light models employed by operators in India makes property management aspects easier for investors. Nonetheless, the focus should not only be domestic but also global as there are Indian market peculiarities and risks like over-reliance on the education sector's expansion and unpredicted laws and regulations. Before investing in this niche but potentially promising segment of the Indian real estate domain, do extensive research on the location, operator's experience and all legal issues related to the development of real estate in the area, Aman Gupta stated.

Investment In InvITs

Consider this guiding principle during the festive period in India -invest in something that you have not examined before. Real estate engaging in the exploration and development of data centres is one such investment. As the growth of the country's digital economy increases and the policies regarding data centre localization become more stringent, the number of data centres in major technology centers of India is on the rise. Although this is a sector that requires quite an amount of capital investments, retail investors are able to readily access it through specialized Real Estate funds or by buying shares on the bourses of the likes of India that boasts of substantial data center operators, said Anurag Goel, Director, Goel Ganga Developments.

There are now Infrastructure investment trusts (InvITs) that have such assets as data centers. The core sectors involved in building and operating data centers possess high growth potential on account of the necessity for such infrastructure and the sizable lease tenures that exist in the Indian markets. It is however a very specialized area, and so it is important to have a detailed review of the Indian landscape of data centers ownership before channelling any funds, Anurag Goel added.

Key Real Estate Investment Options For This Festive Season

As per Mr. Saurabh Phull, COO, The Guardians Real Estate Advisory, this festive season, auspicious occasions like Dhanteras and Diwali present a variety of promising real estate investment options. Fractional ownership allows investors to co-own large commercial properties, starting at Rs 10 lakh, enabling them to benefit from both rental income and asset appreciation without high upfront costs. Real Estate Investment Trusts (REITs) offer another flexible alternative, functioning similarly to mutual funds. With investments starting as low as Rs 10,000, REITs provide access to commercial real estate while paying regular dividends and ensuring easy liquidity.

Co-living spaces, a rapidly growing sector, cater to young professionals and students seeking affordable housing with shared amenities, requiring investments ranging from Rs 30 lakh to Rs 1 crore. Furthermore, smart homes, equipped with advanced technology features, are increasingly appealing to modern homebuyers. With investment options between Rs 50 lakh and Rs 5 crore, these future-ready properties provide sustainable and energy-efficient living solutions in prime locations, Saurabh Phull further added.

How Investors And Homebuyers Can Leverage This Festive Window?

As the festive season is here, the real estate market is poised for a surge in demand, with buyers and investors traditionally viewing this time as auspicious for new investments. We expect a significant jump in sales, driven by renewed confidence in the market and positive sentiment around economic growth. For Omaxe, this season presents a unique opportunity to showcase projects like Omaxe State in Dwarka, where strategic infrastructure and connectivity are rapidly enhancing property values. Investors and homebuyers can leverage this festive window to secure premium assets in high-growth areas, ensuring both lifestyle and financial returns, said Mr. Mohit Goel, Managing Director, Omaxe.

Key Cities To Explore By Homebuyers And Investors

The festive season in India is a time traditionally associated with prosperity, making it an ideal period for homebuyers and investors to explore new opportunities. The real estate market across key cities like Jaipur, Udaipur, and Goa is witnessing a surge in consumer interest. These cities continue attracting diverse homebuyers and investors looking for well-located properties that combine modern amenities with excellent connectivity. At Manglam, we are seeing this trend reflected in the growing demand for our projects, which are designed to cater to the evolving needs of today's consumers. Our focus remains on delivering high-quality developments that offer both comfort and style while ensuring they are accessible at an affordable price point, as per Ms. Amrita Gupta, Chief Interior Designer & Director, Manglam Group.

Mr. Aditya Kushwaha, CEO and Director of Axis Ecorp further added that we are witnessing a surge in interest for innovative real estate investment opportunities, particularly in premium holiday destinations like Goa, during the festive season. At Axis Ecorp, our collaboration to introduce luxury suites in North of Goa offers a unique opportunity to own a share of these premium properties. This festive season, we are showcasing luxury living through the fractional ownership model, allowing investors to enjoy world-class amenities and a prime location near the rapidly developing MOPA region. The festive period is the perfect time for individuals to explore this new investment avenue, with growing demand for holiday homes making it a timely and strategic choice.

How Home Buying Has Never Been Easier In This Festive Season?

The festive season presents an excellent opportunity for real estate investors seeking value-driven investments. With a variety of offers and schemes available, home buying has never been easier, from luxury homes to affordable options. Flexible payment plans and tailored financing schemes have contributed to the surge in home sales during this festive period. Recent data indicates a significant increase in demand for high-end properties, with homes priced between Rs 2-5 crore witnessing a notable rise in sales, said Mr. Amit Jain, CMD, Arkade Developers.

Arkade Views & Arkade Vistas, for example, achieved impressive sales of INR 115 crores within the first 24 hours of launch, demonstrating the growing preference for premium properties. Mumbai's evolving infrastructure has positioned both residential and commercial real estate as attractive investment options. Commercial real estate, in particular, offers promising potential for rental yields and value appreciation. Now is the ideal time to explore these opportunities and make informed investment decisions, Amit Jain further stated.

How To Build A Realty Investment Portfolio In This Festive Season?

Investing in real estate this festive season opens up opportunities across industrial, commercial, residential, and Real Estate Investment Trusts (REITs), each offering distinct advantages. However, industrial properties are increasingly emerging as the top choice for savvy investors due to their high returns and stability. Industrial properties stand out with rental yields of 6% to 12%, well above typical returns from residential and commercial investments. Additionally, long-term leases with corporate tenants offer stable cash flow and lower maintenance costs, making it an ideal investment for those seeking consistent, hassle-free income. The surge in e-commerce and logistics has only amplified demand for warehousing and industrial spaces, ensuring long-term growth potential. In comparison, commercial properties in prime business districts offer high rental income and tenant diversification, but they often require a larger capital outlay and come with higher management complexities. While they provide long-term capital appreciation, the market can fluctuate depending on economic cycles, said Anoop Bhargava, Director & CEO, Empire Centrum.

Residential properties continue to be a reliable investment option due to steady demand and lower entry costs, but rental yields are generally lower, and there's the added burden of maintenance and tenant turnover. Still, they remain attractive for personal use, or flexible leasing and selling options. For those seeking passive exposure, REITs provide an excellent alternative by offering income-generating real estate opportunities without direct ownership. They offer liquidity, regular dividends, and the chance to invest in diversified real estate portfolios across sectors. In conclusion, while commercial and residential properties have their benefits, the industrial sector is increasingly becoming the cornerstone of a well-rounded real estate portfolio, driven by demand stability, superior yields, and long-term growth potential, added Anoop Bhargava.

Conclusion

As we step into the festive season, real estate continues to present itself as a robust and promising investment avenue. This year, we are seeing increased interest in properties that offer a blend of modern living, sustainability, and long-term value. At Ashwin Sheth Group, we are excited to introduce multiple distinct real estate investment options tailored to meet the evolving needs of today's discerning buyers. These include luxury residences, strategically located second homes, mixed-use developments, and premium commercial spaces, said Bhavik Bhandari, Chief Sales and Marketing Officer,, Ashwin Sheth Group.

The festive period has traditionally been a time when families reassess their financial and lifestyle goals, and real estate is seen as a stable, appreciating asset class. With favorable market conditions, attractive financing options, and a heightened focus on quality living, now is the opportune time to explore these investment opportunities. We look forward to helping our clients secure their dream properties and make meaningful investments that stand the test of time, Bhavik Bhandari added.