Smart Cities Present Attractive Investment Opportunity

What are the current challenges in the Real Estate investment scenario?

Established urban hubs like Mumbai, Delhi, and Bangalore are highly saturated markets, which make property prices mostly unaffordable for the middle-class investors. Issues like low transparency, delayed project deliveries and hidden charges often make real estate a less popular investment choice. Adding to that, in many tier-1 cities, property appreciation has plateaued, which has considerably brought down its ROI compared to other asset classes. Many cities and regions of even matured markets still do not have the adequate infrastructures (roads, utilities, water, electricity, sewage etc.) to support the level of real estate development; therefore, leading to degrowth of real estate. Furthermore, the high level of scepticism and distrust due to the existence of fly-by-night developers and poorly planned projects, has always been detrimental to real estate's popularity in the investment portfolio of buyers.

How important is financial literacy, especially when it comes to real estate?

Like any other instrument of investment; knowledge, understanding and financial literacy of the real estate sector is a must for the investor. It is imperative that the buyer makes the decision with a clear view of risk vs. reward so he / she can evaluate the potential that the investment holds.

Diversifying a portfolio of projects which makes for long-term strategic investments, such as high-growth corridors instead of overpriced urban areas, helps investors stay discreet about their decision. Another important factor is awareness about benefits that such investments provide. A thorough look at tax-saving options and other legal compliances always helps the investor make smart decisions.  Assessment of other market dynamics and opportunities like investment in undervalued but growth-oriented regions, hold a higher potential of profitability in the long run.

What are some of the ways to make high-return investment opportunities accessible to middle class?

From land plots to residential projects, affordable investment options are the first go-to opportunity for middle-class investors to enter the market without heavy financial burdens. Higher return investment opportunities can be explored by way of looking at some important government initiatives and incentives which are directed towards tax rebates. Subsidies on affordable housing loans further enable the middle-class investor to lap up opportunities in high-return investment markets. Other ways of making high-returns are Real Estate Investment Trusts (REITs) and crowdfunding platforms that allow pooling of resources thereby making high-growth investments more inclusive and accessible. Last but not the least are awareness programs, workshops and seminars which are designed to educate the investors to explore opportunities in high-potential regions.

In the backdrop of the government’s Smart Cities mission, what investment opportunities are available for investors?

The Smart City Mission, is an urban renewal and retrofitting program by the Government of India with the mission to develop 100 cities across the country making them citizen friendly and sustainable. The mission is designed to create infrastructure-led growth by developing sustainable and tech-enabled urban areas. It emphasizes on world-class infrastructure ranging from roads, transportation, energy grids, water management systems et al. Attracting businesses and residents, the integration of industries with residential and commercial zones in these cities, hold a massive potential of employment opportunities, which is propelling the demand of its real estate, too. Some cities and projects that top the list of investment opportunities, under the Smart City Mission are - 

Ahmedabad: With a focus on green urban living

Bhubaneswar: Emphasis on community-centric cityscapes

Jaipur: Focus to merge heritage with high-tech

Mangaluru: Focus on developing waterfronts, roads, and fisheries

Pune: Focus on smart governance

Surat: Focus on robust transportation systems

Holding the forefront of the Smart Cities Mission, Dholera presents as a flagship investment opportunity, with key features like - proximity to Ahmedabad, international airport connectivity, and being a part of the Delhi-Mumbai Industrial Corridor (DMIC), Smart roads, underground utilities, and planned zones for industrial, residential, and recreational use, major industries setting up in the region & job creation will drive housing demand, ensuring lucrative investment opportunities, affordable land and properties, ensuring significant ROI as the city grows.  Representing a unique option for real estate investors, the city addresses all the current challenges with its government-backed planning, affordability, and high-growth potential, making it a top choice for forward-thinking investments