How to Build Assets While Earning From It
In this authored article, Amit Agarwal outlines how property ownership can be looked at a multifaceted opportunity to monetize while building long-term value.
Traditionally, property ownership has been viewed as a passive investment buy, hold, and wait for appreciation. However, with evolving market dynamics and technological advancements, real estate investors now have multiple chances to actively monetize their properties while simultaneously building long-term value.
A house is more than just a place to live; it is a multifaceted asset that serves three key financial purposes rental income, capital appreciation, and generational wealth creation.
What makes real estate particularly powerful as an investment is its dual-earning potential. On one hand, property values tend to rise due to urban expansion, infrastructure development, and increasing demand, contributing to long-term capital appreciation. On the other hand, rental income provides a steady and predictable cash flow, making real estate a compelling choice for those seeking financial stability and passive earnings.
With evolving market dynamics and technological advancements, real estate investors now have multiple chances to actively monetize their properties while simultaneously building long-term value.
The Appeal of Rental Income
One of the primary reasons for investing in real estate is the opportunity to earn rental income. This income can offer financial stability and serve as a passive revenue source. The rental yield varies across various cities and localities, For instance, Bengaluru, Mumbai, Chennai and Navi Mumbai have maintained an average yield of 3.9%. In Q3 2024, Delhi’s rental yield edged up to 2.7%, compared to 2.4 % in the previous quarter.
The key to maximizing rental returns lies in choosing the right location, targeting the right tenant profile, and leveraging platforms that reduce vacancy periods.
Should you buy a ready-to-move-in or an under-construction apartment?
If you have a substantial amount saved for an upfront payment, a ready-to-move-in apartment may be the best choice. However, if your budget is slightly tight, you could consider a near-completion project that is at least 81% finished, minimizing the risk of delays. Ensure the project has received an occupancy certificate from the authorities and that the flats are being registered.
If you’re unable to make a large upfront payment, an under-construction property might be a better option. Just be sure to choose a builder with a proven track record of completing projects. Additionally, under-construction properties often provide a wider range of choices to suit different preferences and budgets.
The Power of Appreciation
Beyond the immediate benefit of rental income, real estate serves as an asset that tends to appreciate over time. Property values in urban centers have shown consistent growth, driven by factors such as urbanization, infrastructure development, and economic expansion. This appreciation enhances the investor's equity, contributing to long-term wealth accumulation.
Between 2019 and Q3 2024, Bengaluru's peripheral area Gunjur experienced a remarkable 69% increase in average residential prices, rising from Rs 5,030 per sq ft to Rs 8,500 per sq ft. Similarly, the prime area of Thannisandra Main Road saw a 62% price surge, with rates climbing from Rs 5,175 per sq ft to Rs 8,400 per sq ft during the same period.
In the NCR region, the Noida Expressway recorded a 66% rise in average residential prices, growing from Rs 5,075 per sq ft in 2019 to Rs 8,400 per sq ft in Q3 2024. The Dwarka Expressway in NCR, however, witnessed the highest jump, with a 93% increase in prices, escalating from Rs 5,359 per sq ft in 2019 to Rs 10,350 per sq ft in Q3 2024.
In the Mumbai Metropolitan Region (MMR), the peripheral area of Panvel saw a 58% price appreciation over six years, while prime areas such as Worli and Lower Parel recorded 37% and 49% growth, respectively. Similarly, Virar, a peripheral area, experienced a 58% increase during this period.
Pune also saw notable growth, with the prime area Wakad recording a 27% increase in residential prices, while the peripheral area Wagholi witnessed a 37% rise between 2019 and Q3 2024.
Conclusion
Therefore, the ability to generate rental income while benefiting from long-term capital appreciation makes real estate one of the most resilient and rewarding investments. However, success in property investment is not just about buying any home, it’s about making informed decisions.
By selecting high-growth locations, ensuring strong rental demand, and timing your purchase strategically, you can maximize your returns. Whether you choose a ready-to-move-in apartment for immediate earnings or an under-construction project for greater affordability, the key lies in aligning your investment with your financial goals.
With the right approach, real estate is not just an asset—it’s an engine for wealth creation that can secure financial stability for generations to come.
