Real Estate Stocks

Real estate stocks are ideal for investors looking to benefit from the growth in property values. These stocks represent well-established companies in the property market, enabling them to profit as real estate prices rise and potentially increase your savings through smart investing.

High Stability

High Stability

Diversification

Diversification

Passive Income

Passive Income

Capital Appreciation

Capital Appreciation

What are Real Estate Stocks?

Real estate stocks primarily refer to shares of companies engaged in the real estate sector. This includes firms that own, develop, or manage real estate properties. A significant portion of these stocks are Real Estate Investment Trusts (REITs). 

REITs are investment vehicles that own, and often operate, income-generating real estate. REITs enable investors to invest in portfolios of real estate assets, which might include apartments, offices, warehouses, or retail spaces. These trusts are known for paying out a large portion of their income as dividends to shareholders.

How to start investing in Real Estate Stocks with INDmoney?

  • Step 1

    Download the INDmoney app and create your free investment account by completing your KYC ( Know Your Customer).

  • Step 2

    Once your Free investment account is ready, you can either search for a real estate stocks or go to the Stocks section and tap on real estate collection.

  • Step 3

    Choose a Real Estate Stocks by looking at aspects like past returns, volatility, downside returns & proceed to buy.

Real Estate Industry in India

India's real estate sector, a key driver of economic growth, is forecasted to reach a market size of $5.8 trillion by 2047. In FY23 alone, the value of home sales reached an unprecedented Rs. 3.47 lakh crore. 

The sector, encompassing residential, commercial, retail, and hospitality segments, is witnessing rapid urbanization and increased foreign direct investment (FDI), which stood at $56.03 billion as of March 2023. 

Government policies like the Pradhan Mantri Awas Yojana (PMAY) and initiatives to attract FDI are significantly contributing to this upward trajectory.

REITs can be categorized into:

  1. Equity REITs own and manage real property, while mortgage REITs invest in mortgages or mortgage securities tied to commercial and residential properties. 
  2. Hybrid REITs combine the investment strategies of both equity and mortgage REITs. 
  3. Publicly traded REITs are available on stock exchanges and are popular due to their liquidity and transparency​.

Things to Consider Before Investing in Real Estate Stocks in India

Investing in real estate in India requires a careful evaluation of various factors to ensure a profitable and secure investment. Here are a few aspects to consider:

  1. Location: For residential properties, proximity to amenities, markets, and transport is crucial. Choosing between a central location and a suburban area impacts price and space. In commercial investments, connectivity to markets and transport services is vital. Consider infrastructural development for long-term investments​​.
  2. Type of Property: Your investment purpose and budget dictate the property type. Under-construction properties may be cheaper but have uncertain timelines, whereas ready-to-move properties, though pricier, are available immediately​​.
  3. Budget and Payment Plan: Define a clear budget, including initial payments and potential monthly EMIs if opting for loans. This planning helps in avoiding financial difficulties in the future​​.
  4. Purpose of Investment: The end goal, whether for self-use, rental, or commercial purposes, will influence your property choice. For instance, commercial spaces like offices and warehouses have different space requirements​​.
  5. Valuation of Property: Research to understand the market value and price trends of the location and property type. Consider future infrastructural developments that might affect property prices​​.
  6. Real Estate Laws and Government Approvals: Ensure the property is RERA registered and has the necessary approvals from local authorities. Compliance with legal provisions and tax payments is critical​​.
  7. Background Check of Seller and Property: Verify the legal status, registration details, and market value of the property. Assess the builder's reliability and check for any existing loans on the property​​.

Frequently Asked Questions

Real Estate investments can be beneficial and provide steady income and property value appreciation. However, success in real estate investment depends on various factors like market conditions, property location, and personal financial goals.

Yes, real estate investments can generate profits through rental income, property value appreciation, or both. However, success depends on factors like market trends and conditions, property location, and management.

You can invest in top real estate stocks using the INDmoney app. INDmoney offers tools like the Investments Tracker for real-time updates and insights on your investments.

Real estate investing has the potential to build wealth, especially over the long term through property appreciation and rental income. However, like any investment, it's not guaranteed and comes with its own set of risks.

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