Real estate investment is a very good option these days as it yields very good returns. There are some important principles to follow in order to get good returns. It depends on the type of property, whether it is a residential property or a commercial property.

Typically, investing in residential property can earn up to a 6 percent return per year. This mainly depends on the type of property, whether it is a villa or a residential apartment. It also depends on the following factors:

  • City
  • developer
  • Construction Quality
  • Mod cons

Investing in a villa gets very good rental values. If you are looking for an apartment priced above 50 lakhs, it is best to look for projects from A-grade developers that have all the modern conveniences. This helps you improve the rental value. Connectivity is a very important factor to obtain the maximum rental performance.

When investing in a property, it is always better to opt for a mortgage loan. This will help you minimize your tax liability and increase your net return. You can deduct tax for up to Rs 1.5 lakhs on the interest paid per year. You can deduct tax for up to Rs 1 lakh for the capital you have paid per year.

In metro cities, apartment values ​​have increased 200% to 500% in just 10 years, depending on location, specifications, and apartment amenities. Even resale flats with all the modern conveniences make higher profits if they are of a very good quality of construction and have been well maintained.

Bangalore retains the number one spot in office space absorption for the past few years. Commercial properties generate returns ranging from 8% to 10% for office space. There are a number of IT startups emerging in Bangalore these days. Therefore, there is always a high demand for office space in Bangalore. And so the rental value of commercial spaces continues to rise.

Rental values ​​have been moving steadily from 3% to 9% across India. The retail sector is also recovering rapidly, with investors returning between 10% and 12% per year. The retail sector is recovering and the return for investors is between 10 and 12 percent per year.