Investment in real estate is done to gain profit from the appreciation of prices and value in the land & property over the period of time. Investment is always done for the longer period of time. Real Eastate has given tremendous return in the past few years however for the last 4-5 years real estate sector has not given the good returns.
The key players in the Real Estate are as follows:
- SOBHA developers
- Goodrej Properties
- Omaxe Relaity
- Jaypee Group
Interest of investors are safeguard by the RERA (Real Estate Regulation Act) which works as an regulator just like SEBI for capital Market.It will help the investors to protect their rights & bring transparency as they believe that the policies are just made for the benefit of the developers.
It was enacted on 26th March 2016, and all its provisions came into effect from May 1, 2017. As this act was to protect the home buyers from fraud and deception in real estate.
As to invest in property requires huge capital, if you are looking from the long term gain perspective. Small investors felt left out from building wealth through property market.
For the past few years real estate has been witnessing sluggish growth. Delay in projects, long waiting periods for possesion, uncertainties over projects has made investors warry about the attractivness of the sector.
REITs are introduced to add more retail investors to invest in the Indian property market . It is similar to mutual fund in the basic structre however investment is done in stocks or bonds .
There are two types of REITs, REIT and Mortgage REITs
Equity REIT: The Investment is done in and own properties.They generally invest in office & Industrial , retial residential ,and hotel and resort properties.
Mortgage REIT: The Investment is done in own and invest in property mortgages.The main revenue is from mortgage income by renting the property.