Types Of Real Estate

Looking at the real estate market in India requires more than just a quick, fleeting study. One of the most prominent of all concerns and issues, which is often shirked with neglect, is the type of property that one must consider buying. Investment in real estate fund India needs to be one wary decision. You must ask yourself the kind of real estate property that you would want to have—residential homes, shopping malls, warehouses, office towers or any of these. One can’t simply assume that one kind of property will continue to be a good investment just because it has performed well in the past.
Income-producing and non-income producing investments:

There are largely four broad types of income producing real estate—offices, retail, industrial and leased residential. The other common types are hotels, mini storages, parking lots and care homes. 

They all are key income producing investments. 

Non-income producing investments normally encompass vacation properties or vacant commercial buildings. They might as well sound like income producing investments, but if you invest equity in a non-income producing property, you won’t really get any rent.  There is no tenant income to secure the payments. Both income producing and non-income producing properties contribute to the growth of capital market in India. 

Office Property: When investors say that offices are the flagship investment for many real estate owners, they aren’t wrong. Offices, after all, tend to be the largest and highest property type because of the utility hinged to them. At the most fundamental level, the demand for office space is typically pivoted to the requirement for office workers and the various kinds of work they do in financing, accounting, insurance, real estate, services, management and administration. With increase in the number of white collar jobs, there has been an unprecedented demand for office spaces, too.

Atul Kapur is a Co-founder and Managing Partner of Everstone Capital