What are the pros and cons of investing in Real Estate?

Over the past 6 year the Housing Price Index (HPI) created by Reserve Bank of India has clocked150% returns vis-à-vis the Sensex which has generated 57% returns. However, this data doesn’t highlight the fact that real estate as an investment is illiquid and much harder to sell than equities(Sensex). In addition, the HPI varies by cities with Kanpur giving returns of 18% and Lucknow giving returns of 251% during the same period.For individual investors looking for exposure to real estate, SEBI the stock market regulator has approved launch of REITs(Real Estate Investment Trusts) which allow an individual to get exposure to real estate with smaller ticket investments starting Rs 2 lakh. The REIT regulations are being tweaked to make them attractive and affordable for retail investors. We will offer REITs as an investment product once it is launched in the market and available for retail investors.

  • It’s a great way of representing HPI vs Sensex through graphical status. Thanks for posting.