There was a time when investing in real estate was considered the best option ever. The land was limited, thus it was a given that its value would never dwindle. However, true may the fact mentioned above be, the human mind is a fickle piece of pickle and is seldom static in its train of thought.
With time, preferences started changing. The housing market too was affected by the change and soon stopped giving lucrative returns. The ones who invested in it were in for a fix. But as we said, the human mind is dynamic, and soon, there popped up novel ways of investing the space they had vested their interests in, apart from the traditional way of buying and renting it.
We dug in to find some ways that people are using to create real estate returns they have invested in.
House those Students
Students are considered at the bottom of the real estate tier, for the obvious reason of them always being on a saving spree in their budget-bound life. However, students are also the ones always on a desperate lookout for something comfortable and homely. Cities such as Delhi, Kolkata, Kota, Mumbai, and more, which witnessed an influx of students every year, boast not only normal student renting systems, but also newer ones like per bed systems, coupled with packages that involve the presence or lack of facilities thereof.
From hostels to PGs, and even full-fledged flats, there are numerous ways in which one can rent out space to students who are flexible in their choices. In fact, this is the most lucrative way of utilizing real estate, as per a report by the Federation of Indian Chamber of Commerce & Industry.
According to the report, student housing has resulted in nearly 12 percent returns, as compared to other modes such as corporate ones, which yielded a meager 7 to 10%.
Live up the Co-living style
Before you jump to any conclusions, no, co-living does not mean live-in. Co-living, to put it simply, is a system wherein people agree to share lesser-liveable spaces such as kitchen, hall, dining room, balcony, and more for a lesser share of the rent, thereby making a practical and economical decision which works for all.
This one is slowly gaining popularity across the nation. The co-living trend is particularly catching up more in the bigger cities that drive employment, such as Delhi, Bengaluru, Gurugram, Mumbai, and more.
Not many think of warehousing as a viable option for commercial utilization of space. However, if statistics are to be believed, from 2014—2018, warehousing investment turned out to be a whopping 26 percent of the total private equity investment.
Warehousing has also taken off owing to the fact that there is a slump in residential investments. People, now, are more willing to invest in properties that generate constant revenue than the ones they could dwell in.
The major tenants of these spaces are corporates, who are willing to shell out bucks if they get a decent space and connectivity. Not only that, warehousing owners have started expanding the practice by providing additional services such as packaging, cross-docking, automation, and more.
Perk up the Co-work
Co-working spaces have shot up and how. In a country bubbling with ideas and start-ups taking shape every now and then, co-working spaces are where not only people but groups with different ideas can work together. This is a great way of saving on both space and money as common infrastructure comes to the aid of all.
Currently, these spaces are more in vogue in bigger cities such as Delhi, Bengaluru, Mumbai, and all, but the idea is spreading. The best part about investing in a co-working space is that one can start with any size, and tap the businesses and individuals who can thrive in that area. Complement it with a comfortable environment with facilities such as connectivity, infrastructure, and food, and you have a co-working space ready to be given out on lease.
Investment in an estate is a real deal now. Are you ready to explore it?