Assured Returns in Real Estate

Assured Returns

What is Assured Return?


Assured Return these days is a popular concept in the real estate industry. In simple words, Assured Return an interest or return on money invested by an investor at an agreed rate. Assured Return also has the concept of capital appreciation involved. Capital appreciation simply means the rise in the value of an asset based on the rise in market price.


The rate of return assured to the buyer is decided by the developer and usually fixed in advance and offered to all the clients investing in that particular project

Why to invest in Assured Return Schemes?

Assured return is one such plan that attracts buyers faster than any other. It is one of the safest and low-risk investment plans. Assured Returns are given by the builders to the investors who invest in their under construction project. These projects are mostly commercial projects such as space in Business/IT Park, Malls, Shopping Complexes or Studio/ Service Apartments; but lately this concept is coming in residential retail market as well. Assured Return Schemes prove to be beneficial to both the builder as well as to the investor/buyer.

Who should invest in Assured Return Schemes?

This new age concept is beneficial for all those who have got money to invest and are looking for a steady monthly income. As the young investors are being lured by the regular investments, the senior citizens are not behind too.
Assured Return Schemes gives monetary security to the senior citizen by offering them a steady income every month. The people investing in Assured Return Schemes mainly cover retired citizens, NRIs and all those who want to invest in the commercial property.

What Benefits does one gets?

The trend in the commercial sector is to rent a space instead of buying it. This ensures low risk and lesser worry on maintenance. So, it is always a win-win situation for any investor putting his money into such commercial property.

• Provides investors with a fixed monthly income – most developers provide bank guarantee hence adding   security to the transaction.

• Those investing in assured return property can take double advantage of their investments growing & at the same time get returns from day 1 from their assured return property.

• The rate of return works out much higher if you factor in the rental income along with growth in capital value   of the assured return property.   

• The size of investment is much smaller compared to other properties.

What are the risks involved?

Every investment has a risk involved and so does this luring scheme too. The biggest risk involved is: what if the developer suddenly stops paying the monthly payment or what if the commercial site never goes on lease? For such a situation, the solution to this danger lies in including a recourse plan in the agreement to safeguard the investor’s interest.

The reputation, quality of past projects, legal clearances and requisite approvals decide whether a builder is worth trusting or not. Bank security is another major point to be kept in mind for a safer investment. Many builders these days have started giving bank assurance.

If one chooses a reputed builder the risks involved can be avoided making the investment safe and secure.

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