Real estate has always been very popular amongst investors. Andrew Carnegie once said that 90% of millionaires are made from their real estate success.
A relatively bullish sector, real estate in India has gone through a wave of reforms and transformations over the last decade. From demonetisation to RERA to the COVID pandemic, increased construction costs and various tax structures- a lot of factors affected market sentiments creating some uncertainty in the minds of investors.
However, the market is currently witnessing a renewed interest this year and has been on an upward curve since 2021 with the market staging a strong comeback across cities.
Property prices are now soaring and transaction volumes are peaking. As the market has gained momentum, there is a visible appetite for real estate investments as well. Both seasoned and amateur, end users and second-home investors are now betting big on real estate.
In tandem with men, there has been a steady rise in women’s participation in real estate as well. In India, increasingly women are looking forward to investing in tangible assets such as real estate. As per the Fidelity Women Investments Study in 2021, 67% of women are now investing out of a retirement plan. In contrast, in 2010 it was pegged at 44%. Real estate is one of their most preferred choices of investment.
Set your end objective carefully
Fundamentally there is not much difference between a man and woman when it comes to real estate investments. However, there still could be certain areas where women need to focus more, when it comes to making a real estate deal. The reason being, they do not share the same risk tolerance. Research suggests only 3% women can take risky investments compared to 26% of men.
It is important that women before investing need to carefully set their objective. What exactly is their motive for investment? Is it long-term wealth, rental income or investment diversification? Based on their objective, the investment choice will vary.
If the intent is to make recurrent rental income, then investing in retail and hospitality assets might be a prudent choice. If long-term wealth is the prime objective, then investing in residential properties in high-growth corridors is the suitable alternative. If rental income and the creation of long-term assets is the key focus, then commercial assets are an unrivalled choice.
Explore multiple financing options
Mostly it has been seen that women rely on traditional baking-based home loan options. This being a logical step, can be quite restrictive in terms of options. Today there are multiple schemes that can be leveraged than just traditional home loans. There are financial institutions and lending companies that can render hassle-free loans.
Women from underprivileged backgrounds can also avail Pradhan Mantri Awas Yojna (PMJAY) scheme. By having multiple options at their disposal, many women have been planning lucrative investments in real estate.
Likewise, women should also examine all the other nuances such as stamp duty, tax benefits on home loans, discounts and subsidies, etc that might be available for them. This can greatly improve the overall property ownership journey.
Take professional advisory
It’s advisable to opt for trustworthy real estate companies which have proved to be stable so as to have a smooth and lucrative property investment process. These days there are plenty of large size organised players in the market that offer know-how and expertise to discerning investors. Interestingly they also do not charge anything from the end user as they generally make money from the developer.
By taking help from a professional advisory, women investors can dismantle information asymmetry and zero down on the right investment choices. Meanwhile, these advisories can also help with legal formalities and paperwork, thereby giving a great sense of relief to the buyer.
-The author is the Director, Goel Ganga Developments. Views expressed are personal.
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