India, being an agrarian and saving-oriented economy, real estate has always been treated as a safe investment. Irrespective of the socio-economic class, the tendency to invest in real estate is relatively high. However, sometimes, decision-making gets crowded by myths about real estate. Here, we talk about common real estate misconceptions and facts in India.

Real Estate myths and Facts

Myth: Real estate is always a safe investment

One of the most common real estate myths is that investments always provide good returns in India. It's not immune to market fluctuations. Investors must research location, demand, time period and market trends before investing.

Myth: Real estate investment requires huge capital

One of the popular myths about home buying is that you need a huge capital. With the advent of affordable housing projects in India, real estate investment is now more manageable. Various financial options like home loans and real estate crowdfunding enable smaller investors to participate in the market.

Myth: Real estate is a passive investment

Managing can be time-consuming, involving tasks like tenant management, property maintenance, and legal compliance. Investors should be prepared for an active role or consider property management services.

Myth: Location doesn't matter

Across India, the location of a property plays a significant role in its appreciation. Prime areas in cities or regions with solid infrastructure development yield better returns.

Myth: All real estate agents are trustworthy

India's real estate market has had its share of unethical practices. Investors must verify the credentials of real estate agents and seek recommendations from trusted sources.

Myth: Real estate is always a long-term investment

While long-term investments can be profitable, short-term strategies like flipping or rental income can also be lucrative in India, depending on the market conditions and investor goals.

Myth: It's easy to flip properties for quick profit

Flipping properties in India requires a deep understanding of the market and careful planning. It's not a guaranteed path to quick profits and carries risks.

Myth: Real estate investment is always profitable

Like any investment, real estate in India can have ups and downs. Investors should conduct thorough due diligence and be prepared for potential losses.

Myth: Real estate is only for the rich

Real estate investment is increasingly accessible in India, and options like REITs (Real Estate Investment Trusts) provide an entry point for a broader range of investors, not just the wealthy.

Myth: Features and amenities will boost property value

One of the many myths about real estate investment is its value increases with added features and amenities. However, in reality, the features and amenities have very little to do with the overall cost valuation of the property. The real estate misconception that upgrading the property more than what other properties in the area will give higher return does not work in most of the cases. Researching about the potential buyer’s preference helps in renovating as per the market demand and gain higher value in return.

Myth - Real estate investments are easy to liquidate

One of the common real estate myths is it is easy to liquidate, which is far from reality. Selling a real estate property is a time-consuming and complex process that requires legal, and financial aspects. You won’t get instant money by selling off the property. It takes weeks and months in finding the right bury, and negotiating deals. Also, the real-estate market conditions play a huge role in determining the pace of selling the property.

The final word

In India, as in any country, real estate investors need to be well-informed and make decisions based on specific market conditions and their financial goals. By dispelling these myths and gaining a realistic understanding of the Indian real estate landscape, investors can make more informed and successful choices.

Frequently Asked Questions

1. Is there a good time to invest in real estate in India?

Ans. Timing depends on market conditions. Research and consider long-term goals, location, and market trends before making an informed decision.

2. How can I finance my real estate investment in India?

Ans. Financing options in India include home loans, personal savings, and real estate crowdfunding, making it accessible to many investors.

3. What are the long-term prospects for residential versus commercial real estate in India?

Ans. There is a bright future of residential as well as commercial real estate properties in India. As an investor, one should have clear real estate information before investing in any property. With urbanisation, and growing housing demand, residential properties have a steady demand curve. On the other hand, commercial real estate is considered risky but gives higher profitability.

4. How can you tell the difference between trustworthy real estate advice and advice that's based on speculation in India?

Ans. A trustworthy real estate advice is based on facts, data, market trends, and expert analysis. On the other hand, speculative real estate advice lacks fact checking and is based on rumors about quick returns and huge growth potential in a short time. It is important to not to believe in real estate myths to secure your investment.

An interesting outlook on real estate myths in India

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