Trend setter always started from the small and made a big one. Following the same strategy, a group of real estate companies, who are not in the position to proceed through the organized financing route of initial public offering, have started approaching the public in their own ways. They are assuring for regular returns on investments.
High return on investment in real estate has attracted the investors. But only institutional investors and high net worth individual investors has shown their interest in it. There are a large number of retail investors, who find it unaffordable.
Many developers today offer RoI (return on investment) of anywhere from 10 to 24% a year to get people to invest in their projects, and some have even started issuing cheques as well. Such offer is largely by either new developers, who do not have the required standing to attract funds from high net worth individuals or by developers who are expanding rapidly and need to assemble funds from a host of small retail investors.
Most of these real estate projects are in the segment of retail and office space. When asked as to how an individual can invest in properties assured of generating regular returns, new developer Khan Infrastructure says, “One has to invest a minimum amount of Rs 18 lakh in order to avail of the offer.
