REAL ESTATE

Avi Kesharwani
Aryan Keshari
Deepak Shukla
Gaurav Singh Negi
INTRODUCTION
 Real estate financing describes several financial methods used
by potential investors for securing their independent capital
investment. Therefore, it encompasses long-term financial
methods used to secure capital while buying and renovating
property from outside sources. This process of borrowing and
lending money is a liability for both parties — for those who
lend the loan, as well as for those who get the loan as a means
of financial support
 Buying a property is not an easy task, and is definitely a costly
affair. While buying real estate— bank loans, or investing
through REITs is the best possible choice, India offers several
investment options for real estate.
 HISTORY
 Fast forward to the times when supply mechanics started playing an important
role in the sector. The concept of the nuclear family was on the rise and hence
the demand for residential spaces increased parallelly. The Mall concept was
introduced throughout the country from the early 2000s through its first Mall
known as the Spencer Plaza in Chennai. IT companies were set up in various
metropolitan, Tier II, and Tier III cities after the advent of technology and the
Internet. After 2006, the Indian Government sanctioned the modernization of
its Brownfield Airports like Mumbai and Delhi along with Greenfield airports like
Bengaluru which led to a high increase in the real estate development around
the airports. The Real Estate Investment Trusts (REITs) were also introduced in
2014 which allowed investors with a limited budget to make safe investments.
 Today, the real estate industry has made a significant effect on the market. It
has the second-largest contribution to the Indian economy. It is also second on
the list of job creation and workforce in the Indian market.
IMPACT OF COVID

 The impact of Coronavirus on the Indian real estate sector was stifling
to the point that it brought property transactions to a near-halt when
the nation went into a complete lockdown during both waves. Since
then, the market has taken several strides towards recovery, and just
when it seemed the revival was not far, the country is struck by
another variant of the virus, Omicron. However, it is too early to
predict whether the emerging variant will have repercussions on
housing demand and sales or not.
 IMPACT OF GOVERNMENT

 Economic development incentives: The economic development groups for

many of these states are advertising in business publications and major
newspapers and aggressively encouraging employers to relocate with
incredible real estate incentives such as virtually free land or lower property
and/or income taxation.
 Community’s reputation: Your local chamber of commerce, tourism bureau,
and city hall all work very hard to establish the right reputation and attract
the top employers. These organizations can have a real impact on the
market environment for businesses and thus create more jobs in the long
run, which leads to increased population and higher demand for all types of
real estate.
 Business-friendly environment: You can’t underestimate the importance of a
probusiness attitude among state, regional, and local governments to help
create a vibrant economy where your real estate investments can prosper
MERITS OF REAL ESTATE

 Sense of security
 Generates cash flow
 Home loan tax benefit
 Simple and controlled
 Property appreciation
DEMERITS OF REAL ESTATE

 Professional help required

 Time commitment
 Maintenance cost
 Less liquidity
 Property tax
Why insurance is better than real
estate for investment

 Real estate investing is often riskier than people realize relative to

the returns that can be expected but is a part of an overall mix of
investments if you can afford them and diversify. In order to be safe,
avoid real estate investments encumbered by a lot of debt and seek
investments in mostly income producing properties. For most people,
individual real estate investing is not sufficiently diversified and
costly and they lack the requisite expertise.
THANK
YOU