Real Estate Alternate Investment Funds: The Untapped Goldmine
Also in edition: Tenants in Bengaluru Scramble after Sudden Hike in Rent
Hello folks 👋,
This PropWeekly brings two hot updates from the Realty sector:
Real Estate-focused Alternate Investment Funds (AIFs) – The Untapped Goldmine
Tenants in Bengaluru Scramble after Sudden Hike in RentÂ
SEBI: The total assets under management (AUM) of Alternative Investment Funds (AIFs) in India have grown 7X from 2017 (INR 1 trillion) to 2022 (INR 6.9 trillion).
As per experts, AIF’s Real-Estate focused arm is an untapped goldmine for investors.Â
Here’s why experts say so:
Accelerated growth of the Real Estate industry
Investing in the Indian real estate market has been a popular choice among High Net Worth Individuals (HNIs) and Ultra-High Net Worth Individuals (UHNIs)
India’s top eight property markets have seen a year-on-year growth of 34%
Supported by various factors, the real estate market projects growth of $1 trillion by 2030
Ease of investing in Real Estate with AIFs
Real estate-focused AIFs are SEBI-regulated investment vehicles that primarily invest in Indian real estate assets
With AIFs, real estate investors no longer have to deal with complexities like operational hassles, documentation, and asset management
Benefits of investing in Real-Estate focused AIFs
AIFs offer several benefits to investors that include transparent governance, portfolio diversification, tax-friendly structures, and hassle-free investment experience
These invest in different real estate assets across the country, offering access to unique investment opportunities
PropReturns recently launched an affordable AIF opportunity with WeWork, India's largest coworking space, starting at just INR 2.5 Lakhs.
Rents in Bangalore hit the roof with landlords trying to recover the rental amount lost during the pandemic.Â
Companies calling employees back to offices has led to an influx of people in Bengaluru.Â
Experts say Bengaluru's post-pandemic housing inventory has been absorbed, causing a supply shortage. Rental demand has risen in the past few months due to employees returning to the office, including in hybrid mode.
Here’s how the story of a Bangalore-based employee, Anglushulekha Bora, unfolds in this regard:
A few months ago, Bora’s landlord suddenly spiked the rent of her one-bedroom house from INR 12,000 to INR 18,000. With no choice left, she decided to look for a new place. During her house hunt, Bora discovered that rents in Bangalore have become unaffordable and that she’ll have to share the cost of a 2-bedroom house with another tenant.
Another tenant in the HSR layout rented an apartment for INR 60,000, with a 40% rental hike from last year.Â
As per MoneyControl, here’s how rent in some of the prominent areas in Bangalore has increased from April 22- March 23:
Varthur: 57.40%
Hebbal: 47.17%
JP Nagar: 46.67%
Indiranagar: 45.83%
Whitefield: 43.12%
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