In the dynamic realm of Indian real estate, the third quarter of 2023 has brought some unexpected changes, capturing the attention of both investors and industry stakeholders. Nowadays, the significance of real estate investment with limited capital has emerged as a new trend which is expected to continue in 2024 as well. As property prices surge in both commercial and residential sectors, real estate investment has become more attainable, even with modest funds.
As everyone knows, investing in real estate is one of the best and lucrative options to generate additional income in the modern era. Over the years, real estate has been considered as the safest way to invest your money. But what if you only have a limited capital to invest? Well, it is true that real estate investment in India requires a hefty amount of capital but thanks to modern technology, now you can start your own career in the realty sector with limited resources.
Best ways To Invest In Real Estate With Limited Capital
- REITs
Investing in Real Estate Investment Trusts (REITs) is one of the easiest ways to enter the property market without even buying a real estate asset. This provides investors with the opportunity to participate in the income generated real estate properties owned by the REIT. By investing in REITs, investors can earn a percentage of the revenue generated by REIT’s properties.
- Fractional Ownership
The emerging concept of Fractional Ownership has gained immense popularity among the small and medium investors across the country. Investors contribute funds to collectively purchase expensive properties through various Fractional Ownership Platforms (FOPs).
This is one of the most cost-effective approaches to enter the real estate segment, providing the benefits of high-end property ownership without any substantial capital investment. Unlike old property ownership, which generally involves extensive paperwork, fractional ownership simplifies the process of investing in real estate with online accessibility to necessary documents.
- Real Estate Mutual Funds
Another smart way to tap into the Indian real estate market is through Real Estate Mutual Funds (REMF). A REMF is a mutual fund that pools money from different individuals to invest in multiple real estate assets. Investors purchase units or shares in the fund, allowing the fund manager to diversify investments across different types of assets.
With this, you can generate additional income in the form of rent, dividends, or interest. REMFs provide more liquidity as investors can buy or sell their units in the open market.
- Small town investments
Last but not least, small town real estate investments offer numerous benefits to investors. The most obvious one is the low cost of entry. Properties in small towns tend to be cheaper than the units in large cities. This means that you can purchase more properties in a limited amount of capital, resulting in a higher return on investment.
Another benefit of investing in small town real estate assets is the ability to attract long term tenants.
Conclusion
As we are entering into the new year, the Indian real estate sector is likely to grow at an outstanding pace. In this modern era, anyone can step into the realm of real estate where opportunities are fueled by strategic choices and market insights, promising both growth and accessibility.