Real estate business is a highly unpredictable business venture in India. Buying and selling of real estate property has equal probability of both profit and loss. Timing is the keyword in any real estate property dealings. Selling at the right time can result in huge profits.

The basic idea to make profit in real estate business would be to buy when the prices are low, hold the property till you feel the value has reached its peak and has saturated, and sell it out keeping a huge profit margin. But the problem which usually arises following this rule is the huge maintenance costs involved during the holding period which increase manifold in the metropolitan cities such as Delhi and Mumbai. This waiting period is very frustrating as you only have to incur expenses, which might reduce your profit.

The most reliable property in which one can invest in to get an assured return on investment (ROI) is rental property. Rental property comes for as low as Rs. 5-6 lakhs in small towns. I am from a small town called Durgapur in West Bengal and I know how these properties are selling like hot cakes here. What one has to do is to simply stay in the house for a period of time; repair it occasionally for which you can also get tax exemptions and finally sell it. Although returns are guaranteed in investments of this nature, they usually trickle down slowly.

Owning commercial property is a better proposition compared to business property as the hassles of repairing the property as in a residential property is greatly reduced. Investing in such property usually bears good fruit. Location and infrastructural facilities should be taken into consideration while investing in commercial property. You get a better price for a location where you get the Metro, Railway stations, Bus Stands and local bazaars easily.

Owning a plot of land and selling it at the right time is one of the easiest and most profitable kinds of investment. This kind of investment doesn't have any recurring costs associated with it and is thus a pretty safe investment. The waiting time can be particularly long in investments of this sort.

In real estate business you have to be always very aware of the existing market conditions. India is a very fluctuating market, so keep an eye on it. Buy when few are actually buying else you may have to buy in the listed price. Sell at a time when you are in a position to make a good offer. Calculate the time value of money before declaring the price. Keep note of the expenses incurred during the holding time.

In spite of the recent ebb in the real estate scenario, the Indian realty market holds the 9th position among the retail markets of the world with a consistent growth of 30% per annum. The favorable policies of the Indian government is the major initiator of the realty boom. In fact, the real estate industry in India is recorded to be second largest employer after agriculture. Focus is especially on the various metros like Delhi and NCR, Mumbai, Kolkata for developing projects ranging from residential, retail to commercial complexes.

Indian Real Estate - Attractive Destination for FDI As already mentioned, the positive approach of the Indian Government is the major factor behind the growth of the Indian real estate. The following is the list of the FDI groups that have already made their mark in the Indian realty market. List of FDI: