This is no magic to assume that India offers an excellent opportunity for investment in the real estate sector. Having said that, we mean, with the thrust in the infrastructure sector by the current government, more and more Indian cities/towns are fast becoming interconnected. As a matter of fact, those are becoming ready for the next phase of growth and development. In other words, those cities or towns are becoming self-reliant thereby ushering to the growth of disposable income in the hands of the people living there. Hence, real estate investment is all that worthy in markets like Bangalore, Pune, Chennai, and Visakhapatnam to name a few here.
Points to ponder for selecting the best real estate investment company in India:
It is now very pertinent to ask whether you can invest in each and every real estate company here. If not, how you should go about it. Well, there is no straightjacket answer here. In fact, you have to follow certain rules for the purpose. The onus to mention that past performance of a company doesn’t guarantee its future though that can be used as the benchmark initially while shortlisting some companies for investment.
- Balance sheet: A balance sheet isn’t just a record of the financials of a company. It’s essentially much more than that. For instance, a balance sheet has two distinct sections that show assets and liabilities. Assets are listed on the right and liabilities are listed to your left. You have to weigh both the sides. You may find some fictitious assets like goodwill there. You must take adequate care of its’ valuation in all such cases. If not sure, ask for the details from the company before a real estate investment. It will act like a stitch in time that saves nine. Hope the message is loud and clear here.
- Projects in hand: When considering a company for investment, take your time to evaluate projects that the company is working on instead of the rosy picture that it might be selling in the market. You aren’t really aware of geographies and the development per market in India. Therefore, always look at the markets that are coming up in terms of infrastructure development and employment index. For instance, you will benefit more investing in Bangalore than Mumbai. However, you can develop a fair idea on the Indian markets visiting a couple of relevant sites of the Govt. of India.
- Listed company: Check whether the company is listed or not on the stock exchange such as NSE (National Stock Exchange of India Ltd.). When a company is listed with NSE, for instance, it is governed by the rules and regulations of SEBI (Securities and Exchange Board of India) that doubly assure the company’s financials and your investment there.
Likewise, real estate investing requires a lot of homework with a view to reaping the best return on your investment. But, you must have time, patience, and perseverance to keep an eye on the companies operating in the real estate sector of India on a regular basis. This, in turn, will educate you on many counts and at the same time, it will help you know the best real estate companies for investment there.