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Parameters to Learn before Investing in Real Estate Sector

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Real estate investment is considered the most preferred and safest long-term investment. The real estate sector contributes to around 7% of the economy of our country.

In the last decade, there has been robust growth in the infrastructure development of the cities in India. This development has opened up an array of investment opportunities in this sector.

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According to industry reports, India is among the top 10 price-appreciating housing markets globally. In FY 2021, India registered a total real estate investment of $ 2.4 billion with a growth rate of 52% Year-on-Year.

The real estate industry is witnessing a surge in private investment in this sector that is driven by increasing transparency and returns. However, the decision to invest in the real estate sector involves a considerable amount of capital. One wrong decision can affect the investor dearly.

Therefore, investors should consider a few mandatory parameters before investing in the real estate sector.

Research about Property:

Doing proper research about a property before investing is very important. The research about the property should include the location of the property, whether the property fulfills the legal criteria and the background of the builder. Investors should check if markets and amenities are close to the property.

Whereas, proximity to warehouses, transport hubs, and highways should be checked for commercial properties. Investors should also check if they want to invest in an existing property or a new project. New construction projects might offer attractive prices but they may run the risk of delays. On the other hand, existing properties provide convenience and quick access.

Calculate Finances:

Calculating your finances before doing any investment is important to ensure that you can meet certain goals. Investing in the real estate sector is very critical and requires detailed analysis. Therefore, investors must also analyze their expenses and profits beforehand. Also, it is not considered wise to give out liquid cash while investing in the real estate sector.

So, investors should look for a loan plan to invest in this segment. They should choose a loan option that provides the facility to split the credit, or offers the line-of-credit facility. The interest rate of home loans is around 6-7% which is very low.

Also, investors can avail of tax benefits of up to Rs. 1.5 lakhs on the principal payment while investing in a residential property. It will help investors in avoiding long-term financial distress.

Consider Valuation of Property:

When deciding to invest in the real estate sector, it is essential to understand the valuation of the property. The base valuation of a property determines various factors such as insurance premium, taxation, and depreciation. Many state governments provide a guidance value to help investors in finding the correct property rate.

Knowing the market rate of a real estate property helps in tracking the local trend and ensures that investors do not get scammed by paying a higher price. Lastly, property investment must be done in a location that is familiar to the investor. It will give them a clear understanding of the valuation of that particular property.

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Check Documentations of the Property:

Another important step while investing in the real estate sector is to check documentation regarding government approvals. The respective state government orders for grants, sale deeds, wills, succession certification, etc to culminate the vesting of property with the seller.

Investors should check with property dealers if the project has been registered with RERA and if tax payments have been made on time. Many times people buy properties that are below market rate, which could be an alert for investors. Such properties could have litigation or internal conflicts with the owner. Investors should consult legal experts to check the authentication of the documents to avoid future issues with the dealer.

The market size of the real estate industry is estimated to reach $ 1 trillion by 2030. Real estate investment generates assured returns in the form of rent and capital appreciation. People prefer to invest in the real estate sector because of its capability to generate stable short-term income, in the form of monthly rents. Thus, buying a property can be the smartest step given the changing dynamics of the time. So, investors should keep these points in mind to take the right path toward real estate investment.

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Naveen Mypala
Naveen Mypalahttp://urbanliving.in
Naveen Mypala, Founder of Urban Living.

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COP28 UAE: SANY Promotes Green Manufacturing Transformation, Takes Concrete Action to Tackle Climate Challenges

CHANGSHA, China, Nov. 23, 2023 /PRNewswire/ -- SANY Group, ("SANY"), a globally leading enterprise of the high-end equipment manufacturing industry, is accentuating advancing sustainable development and the green manufacturing transformation of the heavy machinery industry, ahead of the COP28 UAE, that is set to take place from November 30 to December 12 in Dubai. The theme of the 13-day program this year is "Actionism," calling for people to rise to meet the climate change challenges.

The COP28 will center on four major paradigm shifts – namely accelerating the transition from fossil fuels, agreeing on climate finance shifts, emphasizing the role of people and nature in climate action, and ensuring the summit is an inclusive event that women, indigenous people, local communities, youth, countries and more can all be a part of.

SANY is responding actively and positively to the summit's agenda with concrete actions to promote the transformation of green manufacturing, bringing sustainable solutions to the industries of mining, construction, wind power, and more.

Taking green actions to build a sustainable future

SANY is vigorously expanding the use of green energy (renewables such as solar and wind) in production processes to reduce the reliance on traditional energy sources, lower carbon emissions, and support climate change actions. It has adopted multiple initiatives, especially in accelerating the R&D and application of wind energy, hydrogen, and electrification solutions, and achieved significant results.

SANY's subsidiary SANY Renewable Energy has been investing in and constructing wind farms to boost the proportion of wind power in the energy structure, through intelligent upgrades in manufacturing and creating intelligent workshops. By doing this, SANY Renewable Energy has reduced the overall unit energy consumption and carbon emissions by 15 percent compared to pre-upgrade.

In 2022, SANY has added more than 3,000 energy metering connections. SANY built China's first intelligent mixing station park and invested 3.22 million yuan in photovoltaic construction that will produce 900,000 kWh of power annually. The park will cut 887 tons of carbon emission, 242 tons of dust emissions, 26.7 tons of sulfide, and 13.4 tons of nitric oxide to achieve synergetic development of intelligent manufacturing and environmental conservation.

A total of 11 subsidiaries of SANY have installed photovoltaic power generation equipment, with clean energy usage amounting to 16.013 million kWh.

SANY is actively engaged in the R&D of hydrogen fuel cell technology to improve battery efficiency, reduce cost, and boost the production and storage capabilities, while expanding the applications of hydrogen energy.

Innovation-driven climate action tackles industry bottlenecks

Through establishing a green supply chain, SANY adopts renewable materials and environmentally friendly technologies to reduce resource waste and improve the sustainability of the supply chain.

SANY continues to improve the long-term mechanism for pollution prevention and control, strengthen the control of waste emissions including water, gas, and other hazardous substances, and be cautious of business and operation actions that could damage the ecological environment. In 2022, the group's wastewater and gas emissions met the standard rate of 100 percent, with a 100 percent compliance rate for hazardous waste disposal.

The group is also pushing for using environment-friendly materials to minimize pollution, so that the carbon reduction throughout the product life cycle also includes materials. In 2022, its VOCs emission density was 0.0011 tons per million revenue, a 39.71 percent reduction from the base year.

Meanwhile, the continuous upgrade of production techniques and processes, promotion of energy conservation technologies, and advancement of low-carbon technology development are not only playing key roles in improving production efficiency, but also reducing carbon footprint and aims to reach the "dual-carbon" goals.

Calling for the public's participation

SANY has been carrying out training programs and campaigns centered on environmental protection for employees, while further raising community engagement in terms of green, low-carbon, community-friendly, and educational innovation agendas. In 2022, the company employees completed 687.4 hours of volunteer work, and SANY invested 9.75 million yuan in the year to support 15 public welfare projects.

SANY Construction Industry is leading the green technology application in urban infrastructure construction to accelerate the sustainable development of cities and building intelligent cities, green transportation systems, and energy-conserving architectures to reduce energy consumption, improving urban environment quality and people's livelihoods.

In terms of biodiversity and sustainable development, SANY emphasizes the conservation of soil, ocean, crops, and animals to create a better future, and advocates a circular economy to decrease the waste of resources.

In the context of increasingly severe issues of global climate change, SANY, as a leader in the green industry, is committed to promoting sustainable development and actively joining global efforts to address climate change through comprehensive initiatives such as green supply chains, green energy, and carbon emission reduction.

For more information about SANY Group, please visit www.sanyglobal.com or follow us on Facebook or YouTube.

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