India's real estate market has been on a growth trajectory for a while now, with increased demand for property due to the country's growing population and economy. This has increased the number of real estate options available for buyers. Before investing in real estate, it's important to understand the different types of properties available in India.
Types of Real Estate Property in India
Residential Real Estate
Residential properties are the most popular real estate investment in India. Because of its low entry cost and easy financing options, this investment is a good place to start for aspiring real estate investors.
The common types of residential properties include:
Single Family Homes
Homes built on single lots with no shared walls are called single-family homes or SFHs. Such houses have a garage either detached or attached. The value of such residential properties often increases over time. Also, single-family homes located in a rapidly growing area typically have a high resale value.
Condominiums
A condominium or Condo is a single unit within a larger building or community. These are most popular in high-density, urban areas with many shops and restaurants. Since the condo owners aren't responsible for the exterior of the unit, they need to make only fewer repairs. As such, investors mostly don't have to worry about landscaping the unit or fixing the roof.
Townhouses
A townhouse is a hybrid term between a condominium and a single-family home. They often have multiple floors, one or two shared walls, and a small garden space. They are larger than condos but smaller than single-family homes.
Generally, these kinds of residential properties are less expensive to buy than single-family or multifamily properties.
Cooperatives
In cooperatives or co-ops, you own a share of a building. In other words, everyone using the structure jointly owns it. Co-op owners must pay maintenance fees. Therefore, the Homeowners Association or HOA expenses are lower than the condos.
Multi Family Homes
Multi Family homes consist of two or more units and can be either row house-style, multiple floors, or range from duplex to a four-plex. Along with this includes garden apartments, mid-rise apartments, and high-rise apartments.
The only difference between a condo and a multifamily home is that you cannot buy the latter individually. Also, buying a multifamily home with a single mortgage can result in less paperwork and headaches than buying two single-family homes.
Commercial Real Estate
Commercial properties are best for making investments, including hospitality projects, industrial space, retails, etc. These properties are specifically designed for investors who want to improve their local communities. Usually, these types of properties have a higher potential for cash flow. CRE investors can benefit from longer leases and lower vacancy rates than other forms of real estate.
Office SpaceOffice buildings, like multifamily properties, are also designed as low, mid, and high rise depending on their size.
Office buildings are categorizedinto:
- Class A buildings: good in terms of location and construction
- Class B buildings: good in terms of high-quality construction.
Industrial Space
Industrial space also differs in size based on its specific use:
- Heavy manufacturing properties have heavy machinery customised for the client.
- Light assembly properties usually include office space, product assembly, and storage.
- A flex warehouse is an industrial property used for both office and industrial purposes.
- Bulk warehouses distribute products regionally and provide easy access to trucks.
Retail Space
These properties are sub-categorised into:
- Shopping centres typically have a mix of small retail stores like dry cleaners, restaurants, etc.
- Community retail centres are properties occupied by community centres, drug stores, and grocery stores.
- Power Centreincludes several smaller retail stores but is distinguished by big box retailers, such as Walmart.
Hotel and Lodging
Hotels are categorizedinto:
- Full-service hotels are hotels located in tourist areas or central business districts.
- Limited-service hotels offer limited services and include boutique properties.
- Extended hotels have large rooms and small kitchens designed for staying a week or more.
Healthcare Centres
These properties usually include hospitals, doctor's offices, clinics, or senior care facilities.
Unique Purpose
In real estate, unique purpose property includes publicly owned properties like places of worship, libraries, schools, parks, and cemeteries.
Vacant land
Vacant land, or raw land, is an underdeveloped or unoccupied area. The cost of such land varies directly depending on the land's size, location, and the earth's zoning use.
Raw land purchases often provide steady cash flow and come with several exit strategies.
The vacant land typically comprises timberland, working farms, ranches, orchards, or any new construction site.
Usually, developers acquire such vacant lands and combine them with other properties by assembling and rezoning them to increase the density and value of the property.
About PropertyAngel
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