Exploring Traditional Tactics & Emerging Real Estate Investment Avenues

Real estate has become a champion investment option in a turbulent financial world like ours. It promises stability and growth potential. The most trusted methods remain tried-and-true tactics like rental income, property flipping, and the consistent appeal of REITs. These methods have been relied upon for decades as they provide consistent cash flow and establish a higher level of dependability. Residential properties, commercial real estate, and land purchases offer fair rental yields and capital appreciation.

The real estate sector is resilient, and India’s growth trajectory looks profitable. Tangible assets, prospective rental earnings, and property value make real estate investment an appealing alternative for individuals with a long-term outlook. The financial year 2025 aspires to bring a myriad of different prospects for real estate investment. Let’s explore and find various ways to generate returns from real estate by directly and indirectly investing in property.

Classic And Traditional Real Estate Investment Strategies

Since time immemorial, the most trusted methods have been tried-and-true tactics like rental income, property flipping, and the consistent appeal of Real Estate Investment Trusts (REITs). Though these methods have been relied upon for decades, they provide a consistent cash flow, establishing a higher level of dependability.

Here are the details of these traditional go-to money-making investment methods–

Direct Ownership

Direct property ownership involves buying and holding a physical entity, such as a residential, commercial, or industrial property. In India, direct ownership is considered one of the best investment options due to the potential for long-term capital appreciation and regular rental income, particularly in high-demand urban areas. This method gives investors full control over their assets, allowing them to decide about real estate property management and tenant selection. Investors get decent benefits through direct ownership, such as deductions in mortgage interest, property taxes, and depreciation.

Property Flipping

Investing is a game of timing and strategy. It is akin to catching a wave at its peak. To succeed, one must skillfully buy when the value of an asset is at its lowest and then sell when it rises to high levels. It is metaphorically like riding the wave of opportunity to maximize returns. Property flipping involves investing in undervalued real estate properties to resell them at the right time. It is suitable for people with proper experience in property valuation.

Property flipping is still in its nascent stage in India. Growth is slow, but it shows potential. The key to a greater profit turnover is proper renovation and repair, cost management, and due diligence beforehand. However, it also carries risks, such as market stagnation or delays in project completion, which can impact returns.

REITs

Investors interested in adding properties to their portfolio without any transactions can opt for REITs or Real Estate Investment Trusts. It utilizes the investor’s own money to buy and manage income-generating properties. REITs are traded on major stock exchanges. One key advantage of REITs is that they have more liquidity than traditional real estate investments, meaning they can be easily bought and sold. It typically focuses on two types of investments, i.e., mortgage-backed and equity-backed properties. To qualify as a REIT, a company must pay about 90% of its taxable income to investors as dividends, which allows them to avoid paying corporate taxes.

Fresh Tracks in Real Estate Investing

Although flying cars may not exist, there are numerous ways to profit through investing in real estate. Many market players choose alternative, non-traditional ways to diversify their portfolios. These options typically have a low correlation with traditional investments, which helps reduce prevalent portfolio risk.

After following the traditional path for several years, it’s time to understand more about some non-traditional avenues.

Non-Traditional Assets

Some non-traditional property types that are becoming popular are in tune with the trends of society and the world today. These include student housing, data centers, health care facilities and senior living apartments. For instance, flats in Gurgaon for sale are available for bachelor and student accommodation, a promising niche since people will always need homes, especially in metropolitan towns. Hospitals and retirement homes target the ageing global population and provide stable revenues due to long-term leasing agreements. These specialised segments may give higher yields than conventional real estate investments but may carry more risk and remain sensitive to market forces.

Crowdfunding

Crowdfunding is popular because it involves many benefactors pooling their resources to invest in a larger residential or commercial property. Investors can choose between different types of projects, ranging from residential developments to commercial real estate, often diversifying their portfolio across multiple properties and regions. It requires low capital, although the investments made can be illiquid with the possibility of higher fees.

Green Real Estate

Green real estate consists of properties with features like energy efficiency, renewable energy systems, and sustainable materials. Such green initiatives are beneficial to the environment yet profitable. They help to obtain more significant demand from people willing to rent or buy the property. The government also continues to introduce favorable policies and measures on green building projects that can augment returns on investment. Sustainable properties may be more capital-intensive at the onset and likely be characterized by stiffening regulations.

Co-Living / Working Spaces

Due to increasing globalization and emerging trends, co-living and co-working spaces are rising. Co-living spaces offer shared living arrangements and appeal to millennials and Gen Z professionals seeking affordable, community-focused housing options. Meanwhile, co-working spaces cater to freelancers, startups, and companies seeking flexible office solutions. With the growth of the gig economy and remote work, these spaces offer high investment potential due to their flexibility and modern amenities.

Happy Returns at Last!

The real estate sector is considered smart due to its steady cash flow, portfolio diversification, and long-term appreciation in traditional avenues and emerging markets. Real estate’s tangible nature, tax benefits, and inflation protection strengthen its appeal as a reliable investment.

With the right strategy and careful planning, real estate continues to be a cornerstone of any diversified investment portfolio. The market is ever evolving, driven by advancing technology and shifting customer demands; investors can position themselves to capitalize on future opportunities and build a lasting legacy.

Note to readers: This article is part of HT’s paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.

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