KYI: Know Your Investment

What’s unique about Residential Real Estate?

Residential Real Estate refers to properties intended for living
purposes. Investments in this sector can range from
individual rental properties to large-scale residential
developments. These assets can appeal to both individual
investors and institutional entities due to their potential for
income generation and value appreciation.

Why Invest in Residential Real Estate?

The residential real estate market is influenced by factors
like demographic shifts, urbanization trends, housing
market economics, and policy changes. Recent trends
include the growing demand for sustainable and smart
homes, and changes in housing preferences post-pandemic.

Investment Considerations

  • Valuation Techniques: Valuation in residential real estate considers location, property condition, market demand, and comparative sales. The income approach, focusing on rental income potential, is also commonly used for investment properties.
  • Ownership Structures: Investors can engage in residential real estate through direct ownership, joint ventures, real estate partnerships, or indirectly through residential real estate funds and REITs.

Source: Based on Study conducted by Mordor Intelligence

Source: imarc

Aspect Residental Real Estate Commercial Real Estate Industrial Real Estate
Primary Use Housing and Living spaces (homes,apartments). Business operations(offices,retail stores, hotels). manufacturing, warehousing, and distribution centers.
Typical Tenants individuals or families. Businesses, retailers, service providers. manufacturing, logistics companies.
Lease Terms Shorter-term (usually 1 year). Long-term(5-10 years or more). Varies, often long-term.
Consideration Timeline Shorter timelines, smaller terms. Longer timelines, larger budgets, larger teams. Varies, often longer due to technical Complexity.
Investment and Returns Lower entry cost, strady rentail income. Higher investment, potential for higher returns. Varies widely, often requires significant investment.
Maintenance and Management Regular maintenance, direct tenant interaction. Professional management, higher maintenance standards. Specialized maintenance, less frequent tenant interaction.
Location Sensitivity Highly sensitivity to local amenities, schools, etc. Dependent on business activity, customer access. Access to transportation, less sensitivity to aesthetics.
Regulatory and Zoning Subject to local residential zoning and regulations. Commercial zoning, ADA compliance, more complex regulations. Industrial zoning, environmental and safety regulations.
Regulations and Codes Local building codes for safety and sustainability. Stringent building code,emphasis on safety and accessibility. Most stringent standards for safety and technical requirements.
Project Examples Single-family homes, condominiums, townhouses. office buildings, shopping mails, hotels. Factories, power plants, warehouses.

Open Investments

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Investments for Resale

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Net Asset Value:

₹ 28,00,000

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Fully Funded

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Net Asset Value:

₹ 28,00,000

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%