Key Reasons to Invest in Real Estate 2025
The major key reasons for investing in real estate in 2025 are a stable flow of cash, tax benefits, better diversification, leverage, strong market growth, RERA, and transparency. Also, many other factors positively impact the investment in Indian real estate in 2025.
Emerging Trends in Real Estate in India (2025):
As of 2025, emerging trends in real estate are, properties are getting sold out in the prelaunch stage, and the launch stage is due to the safety of the RERA transparency. Also, some other major trends are smart and sustainable homes, with a green building development strategy, and net zero energy homes. Most of the banks are giving up to 100 per cent loans with flexible EMI interest rates of just 7%.
The top five reasons to invest in real estate in 2025 are:
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High potential for rental income.
As of 2025, all over India, the top 10 iconic cities, like Bengaluru, Mumbai, Pune, and Hyderabad, have a high demand for rental apartments. The rental income in these cities has been increasing year by year for the last 5 years. These cities have seen up to a 30 per cent hike in rental demand. Also, RERA-approved residential units will usually have more demand, which is over ₹10,000 more than the local projects.
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Tax benefits and incentives
Real estate investment will offer the best tax benefits to the one who can convert the excess cash flow of his business to white money in a legal way. In real estate, he can invest so that it will be the investment first, and later on, he can give it for rent so that rental income will pay the EMI or monthly yield. In the future, investors will still sell the same flats at higher prices. Also, in India, according to the law, only 30% of standard tax is deducted from rental yield.
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Lower risk of loss:
The one who has money and intends to invest can go for real estate in India in 2025. Because other investments like stock trading and daily variation may either give profit or may not. But the real estate market in India is only developing, having year-on-year growth of up to 10 per cent in the purchasing price. However, in the case of no hike, at least investors can use it for their purpose or else sell it for the same price as they bought. The chance of losing the investment is comparatively low in the case of investing in a RERA-approved project.
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Long-Term Value Appreciation:
In the case of investing in residential investments like apartments or villas, the first builder will give the housing or property ownership for a hundred years. Once after a hundred years in the same place, the value of land per sq ft will be more than triple that. At that time, he can give the rest of the share and reconstruct the house himself; if his next generation is not needed, they have the right to receive the UDS, an undivided share of the land. These shares will be almost equal to the price of the property he bought at the time.
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RERA authority transparency:
The Real Estate (Regulation and Development) Act has a major role in real estate and came into action in 2016. Due to this, investors can invest freely once they approve the project because from the start of EOI to the occupancy of the unit, the whole procedure will go through RERA rules. This authority will fix the valued price, completion date, quality, and documents regarding investment. If the builder is delayed or misleading, the RERA rule has the right to refund all the money to the investor who has invested during the prelaunch. The RERA has been like investor protection since 2017, which has decreased real estate fraud by up to 50 to 70 per cent.
Godrej Properties Prelaunch Project is Godrej Tiara