Real Estate
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Updated on 10 Nov 2025, 10:34 am
Reviewed By
Abhay Singh | Whalesbook News Team
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Real estate is increasingly being viewed as a strategic investment for long-term wealth creation in India, moving beyond its traditional role of financial stability. Emerging data indicates a significant recovery and growth in the sector, making it a key component of Indian investors' portfolios, particularly in Tier 2 and Tier 3 cities. Experts like Prakhar Agrawal of Rama Group highlight how infrastructure development and enhanced connectivity are unlocking potential, encouraging investment not just for ownership but for portfolio diversification.
Recent reports corroborate this trend. An ANAROCK report indicated that housing prices in Delhi NCR saw a remarkable 24% year-on-year growth, with home values rising 81% between Q1 2020 and Q1 2025. Rental yields are also improving, with India's average gross rental yield reaching 4.84% in Q2 2025, up from 4.39% a year prior, according to Global Property Guide.
Ajay Malik of RISE Infraventures notes that investors are shifting from traditional fixed deposits to real estate, particularly in Delhi NCR, as a hedge against inflation, offering both appreciation and steady income. Delhi NCR's residential values have grown at a 13.7% CAGR over five years. Salil Kumar of CRC Group attributes this shift to post-RERA reforms and increased transparency, alongside the growing appeal of fractional ownership and REITs for younger investors.
Impact: This trend signals robust growth potential in the real estate sector, potentially boosting related industries like construction, building materials, and financial services. It also offers investors a tangible asset class for portfolio diversification and inflation hedging. Rating: 8/10
Difficult Terms: * **Tier 2 and Tier 3 cities**: Cities in India that are smaller and less developed than major metropolitan areas (Tier 1 cities). * **Portfolio diversification**: Spreading investments across different asset types to reduce risk. * **Capital appreciation**: An increase in the value of an asset over time. * **Gross rental yield**: The annual rental income from a property before deducting expenses, expressed as a percentage of the property's value. * **Hedge against inflation**: An investment that is expected to maintain or increase its value during periods of inflation. * **Compound Annual Growth Rate (CAGR)**: The mean annual growth rate of an investment over a specified period of time longer than one year. * **RERA**: Real Estate (Regulation and Development) Act, 2016, an act to regulate the real estate sector in India and promote transparency and accountability. * **Fractional ownership**: A model where multiple investors jointly own an asset, sharing costs and returns. * **REITs (Real Estate Investment Trusts)**: Companies that own, operate, or finance income-generating real estate, allowing individuals to invest in large-scale properties.