Indian Realty: Renting, a Big Hit - By: Deepika B

The property trends in India have been changing ever since the deadly blow of recession hit the economies of the world. Though Indian economy managed to bear it in a much better way as compared to other countries, recession has had its effects. The swift pace of developments had been slowed down and almost stagnated for more than a year due to the global slowdown. But, the resilient economy of India has helped it pick up pace as evident by its quick restoration.

The Indian realty sector has been the hottest investment destination from past few years given its newly realized capacity and scope for progress. Almost five years ago, infrastructure existed in metro cities only while rest of the country was deprived from development and modernization plans. But, as soon as, the need and potential for real estate expansion was determined, all other cities followed in the footsteps of metros.

The immense construction of buildings carried out in India has boosted the value of property in a big way. Both realty rates and rentals across the country have more than doubled in just couple of years. Tier-II and tier-III cities are reaping maximum benefits from these structural developments while tier-IV cities are also gaining attention. A wholesome approach seems to have been adopted for the overall growth of Indian real estate industry. Lands and plots in all small and big cities are being developed to absorb the growing need for housing and to meet the commercial demands of more commercial office space, retail shops and entertainment zones.

It is interesting to note that rental deals are more found to be more preferable among both property dealers and property buyers. The growing value of rented property has gained a favorable image in the eyes of property agents who are now focusing more on leases and rents. They are now devoting themselves to rented homes negotiations more than ever as middle-class is thinking twice before buying the property. The increasing interest rates on home loans, continued fuelling up of taxes and the predicted rise in property prices are some of the factors that are planting inhibitions in the minds of buyers. They seem to be more interested in paying rents than large amounts of EMIs (Equated Monthly Installments).

A flat or an apartment costs nothing below 70 to 80 lakhs in capital city Delhi and NCR today. An increase of almost 30% is recorded in the regions in and around Delhi, the capital value or cost of flats has almost doubled in cities like Gurgaon and Noida. Though there may be various reasons for such hike in property prices, people are much happier settling rents than burdensome loan amounts. Moreover, they are easily transferable and contract can be terminated without many hassles when compared to selling off an owned flat or apartment.

One of the most prominent drivers of the direct demand for commercial spaces and an indirect one for housing is the mushrooming of IT and BPO industries. The growth in this sector has been propelling the realty market in a considerable manner. In fact, it would not be incorrect to say that technology and outsourcing companies have spelt success for real estate rental property business.

On commercial front, industrial properties are leased out for business projects and have the advantage of long term agreements or contracts. On the residential front, the professionals employed in these firms look for PG accommodation or rent flats in the area. Retail segment follows similar trends when apparel or food chains rent space in multiplexes, malls, etc. Rented properties are, therefore, a big hit in India.

About the Author

Deepika Bansal writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers & brokers can exchange information. At 99 acres, you can advertise a property in India , search, rent property , browse through other Real Estate and Properties.

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