Real Estate investment offers one of the most attractive ways to diversify our investment portfolio. Further, as an asset class, real estate provides high returns because supply of real estate property is fixed, while demand varies.
The main attraction in investing in realty is that it offers a possibility of steady income yields; tax structuring benefits, moderate capital appreciation, and higher security in comparison with other instruments. Unlike the ups and down of the jittery stock market, the real estate offers us the opportunity of possessing a long-term investment asset class.

According the various Research Reports, the growth of Real estate is likely to be driven by many factors. The three key segments of the Real Estate industry are Housing, Commercial and Retail.

Demand for housing has grown on population growth and demographic changes. Factors include an increase in nuclear families, lower average number of members per household and an overall increase in population along with increases in national income and standard of living.

However, we must bear in mind that while as buying the right investment property can lead to positive cash flow, capital appreciation and tax benefits, buying the wrong investment property can be disastrous. Before getting into anything, we need to know a number of basics about the investment property market.

Some of the reasons why investors should opt for this asset class are as follows:

1. Real estate as an asset is not as liquid as investment in stock market, bank deposits etc.
2. It is a great investment option for, not only does it have the potential to make a profit over time, but while the investment matures, it gives inflation-linked returns, in the form of rent.
3. Typically, leasing residential and commercial property could fetch a pre-tax return of 6-9% and 8-11% respectively. Capital appreciation, if any, would provide additional return on investment.
4. A power of attorney to a trusted friend/ relative/ professional would obviate the need of physical presence for legal formalities.
5. Loans can be raised conveniently in India and abroad for investment in property.