What is Real Estate Investment?

Real estate investment involves purchasing, owning, managing, or selling property to generate income or achieve capital appreciation. It is considered a hedge against inflation and a reliable source of passive income. Investors can choose to actively participate in property management or adopt a hands-off approach through indirect investments.

Types of Real Estate Investments

Real estate investments come in various forms, catering to different financial goals and risk appetites. Residential real estate is the biggest asset class comprising land, residential housing and holiday homes. Commercial real estate is the other half of real estate. In terms of size, $70 Billion+ in invested in residential real estate every year in India while that number is ~$15 Billion for commercial real estate

1. Residential Real Estate

The biggest asset backed investment category in the country, gives the option for investors to diversify between their rental and capital appreciation goals.

The sub categories are Land which includes Plotted and open land, Residential Housing covering housing across all categories and Holiday Homes which are second homes for either rental generation or for leisure use.

Why Residential Real Estate and Who Should Invest?

Residential real estate continues to be the preferred investment class for retail investors, with over 3 lakh homes sold annually and more than half a million transactions when factoring in land deals. The lower ticket size and widespread retail participation make it an accessible entry point for those looking to build wealth through real estate.

Why is Residential the Biggest Asset Class?

1. Resilient Market - Housing demand remains high, especially in urban areas, and prices typically do not depreciate or fluctuate sharply, ensuring stable long-term growth.
2. Largest Wealth Holder - Globally, residential real estate holds more wealth than stocks, commercial properties, crypto, or even gold, making it the largest asset class.
3. Easier Liquidity - Residential markets offer greater liquidity compared to commercial real estate. If you co-own a ₹50 crore office floor plate vs. a ₹50 crore portfolio of residential apartments, the latter will be easier to sell or exit, as there are more buyers for homes than commercial assets.
4. Retail-Centric & Accessible - The lower entry cost compared to commercial properties makes it an attractive choice for retail investors looking to start their real estate journey.
5. Tax Benefits - Residential real estate offers tax advantages, including deductions on home loans and rental income, improving overall returns.

Quality Isn't Expensive

For the same investment amount, premium residential properties often offer better quality assets compared to commercial real estate. A ₹50 crore budget can secure a CRE asset but can also diversify across multiple premium apartments from Grade A developers, reducing risk while ensuring consistent returns.

2. Commercial Real Estate

Commercial real estate presents opportunities for steady rental income and wealth preservation. This category often requires higher capital investment and longer lease cycles compared to residential properties. The sub-categories include Office Spaces, Retail Spaces and Warehousing & Industrial Units.

Commercial real estate has different market dynamics as compared to residential real estate owing to dependency on tenancy for sale, large size of real estate and lower number of buyers. It has been a preferred category for institutions and ultra HNIs who diversify into this asset class.

Residential vs. Commercial – Which is Better?

The best real estate investment depends on your net worth and goals:

If your net worth is under ₹20-25 crore, residential real estate offers higher growth potential, better liquidity, and easier entry into the market.
If your net worth exceeds ₹20-25 crore, commercial real estate (especially through REITs) can be an effective wealth preservation tool, providing steady rental income and long-term appreciation.

For most investors, residential real estate remains the superior choice for capital appreciation, liquidity, and accessibility, making it an ideal wealth-building asset.

Why Invest in Digital Real Estate with Alt DRX?

Real Estate is a lucrative category to invest in but there are barriers which deter investment into this:

Large capital requirement to purchase real estate
Requires multiple stages of evaluation and due diligence to identify the right real estate
After identification and shortlisting there are multiple manual steps which require in-person attendance to complete

There are post-purchase yearly management items which require time and effort.

Alt DRX provides the opportunity to invest digitally in real estate where all of this is taken care of.

All steps are digital—no physical paperwork required.
All real estate is evaluated under stringent parameters and due diligence completed.
All purchase and post-purchase steps are taken care of by the asset manager.
You can start with as low as Rs 10,000 to invest in real estate with Alt DRX.

* Alt DRX is a platform facilitating access to real estate investment opportunities. We are not a registered broker-dealer or investment advisor. We do not provide personalized investment advice, endorsements, analyses, or recommendations regarding specific investments or securities. Investment decisions are ultimately your responsibility. We encourage you to conduct thorough due diligence, not rely solely on the information presented on this platform, and consider seeking professional advice from a financial advisor, attorney, or other qualified professional to understand and assess the risks associated with any investment opportunity. Alt DRX does not guarantee any specific investment performance, outcome, or return of capital for any investment opportunity listed on this platform.