Real estate has always been considered to be a good investment option by Indians. If people are unable to stay in their property themselves, renting it out is a good option to earn income.
In the past decade, Indian metros have witnessed a huge change in the renting scenario, primarily due to increasing real estate prices and migrating population. Listed below are some renting trends in Indian metros:
High demand for rented properties: Rural areas and small towns in India do not offer attractive opportunities. On the other hand, metros offer higher employment opportunities compared to rural areas. This attracts many people to migrate from smaller towns and rural areas to metro cities. Due to this increase in population, there is a higher demand for rented houses in metros. Although the level of migration to metros may reduce in the coming decades due to development of smaller towns, migration will continue to exist, thus causing a higher demand for rented properties, leading to an increase in rental costs. Presence of good schools, health care facilities and other infrastructure will also increase the demand for rented properties. These factors are other reasons for an increase in rentals in metros.
High real estate prices: Real estate prices have sky rocketed in in Indian metros over the past decade. In addition to basic prices, other extra charges such as stamp duty, registration charges, taxes, etc add to the cost. As a result, not everyone is able to afford a property. In this situation, renting becomes the only way out to stay in a metro. Further, high real estate prices also lead owners to expect a high rent from tenants in order to recover their investment in the property. This leads to high rentals in metros.
Higher income levels: People in metros earn a higher income compared to their rural counterparts. Also, most households in metros have a dual income, with both husband and wife earning. Thus they do not mind paying a higher rent to house owners. This has also caused a general uptick in rentals in metros.
Non conventional types of tenants: Unlike smaller towns where families primarily take houses on rent, metros witness other forms of tenants as well, in addition to families. Two or more students join hands to take a property on rent. Sometimes, colleagues take a house together on rent. Companies also take properties on rent and convert it to their guest house. This trend is largely absent in non metros.
Stringent checks: Unlike smaller towns, many metros (especially Delhi and Mumbai) have stringent verification procedures in place before a property is given on rent to tenants. Although some metros do not make registration of the rental agreement to be mandatory, many a time this is preferred by owners in metros in order to safeguard themselves against fraudulent tenants.
Going forward, an increase in supply of rental properties and development of tier 2 and tier 3 towns in the country can slow the increase in rental rates in metros. However, metros have always been attractive to majority of people, and hence demand for rented properties will continue to exist.
Is Delhi-NCR real estate moving sluggish
If the recent trends in real estate market in Delhi are to be believed, there is a significant dip in the units sold in the capital and NCR in the last 18 months. The sluggish trend has been whistled by lack of incentives from the administration which is focussing on clearing infrastructure road blocks rather than giving green signal to new projects. With paper works in the backlog, new projects in Delhi are at pause, at least for the rest of the year 2015.
Tips for new residents in Panvel to understand their locale better
Panvel has seen a major transformation from a sleepy suburb to a satellite town and finally to a full-fledged city. The growing population willing to reside in the Mumbai MMR region, the shortage of adequate real estate destinations in Mumbai region has made investors and buyers look at Panvel as their best option. Panvel was famous from its lush green surroundings and farm houses. With changing times and inflow of population there are abundant new projects available in Panvel for investors and buyers alike.
Looking for a green living space in Zirkapur Here are options
Zirakpur located near Chandigarh and part of the tri city comprising of Chandigarh, and Mohali is one of the most popular real estate destinations. While Mohali and Chandigarh investors have had the luxury of investing in properties located closer to nature with lush green belts and parks, Zirakpur residents often faced concrete jungles.
