Real estate mutual funds once allowed (are not yet allowed) by SEBI in India will be a good medium for property investment in india. It is expected that the regulatory authority will shortly prescribe the framework for such funds to operate in India. In other countries, as in the USA, Real Estate Investment Trusts (REITs) are the accepted mode of investments into realty. These are listed on the exchanges, too, for easy liquidity.
Private funds have been in vogue in India for a few years. But the minimum amount of investment per person is high at Rs 1 crore to Rs 5 crore. There is a private label fund from Optimix dedicated to realty and realty related stocks which is one way to benefit from realty as a category.
Another trend in realty is to buy and share a large commercial property with many others. Each may buy 2500 sq ft upwards of a large floor plate and the developer leases the entire floor plate to one tenant, with the rent being shared in proportion to the ownership.
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