Residential Real Estate in India

Posted by vcode | Realestate news | Monday 18 July 2011 5:59 am


The residential sector in India is witnessing a huge growth. Those who have entered this industry are making huge profits. There are many millionaires made by this industry. The new entrants in the property market are developing townships and colonies have office complexes, commercial spaces, hospitals, multiplexes all at one place.

The Indian government has also given the real estate industry many facilities. The policies of the government for the investors in all the sectors have facilitated this growth. The residential real estate consists of 75% of the total real estate. People are buying houses. The old trend of building the house at the time of retirement has changed. As soon as a person is settled the first thing he/ she does is to buy a flat.

As the salary in almost all sectors has improved and the interest rate has lowered, there is an improved level of activity on the part of retail investors in the residential sector, especially in the low to mid-end housing sector.

People in small towns and cities are building houses or flats as it has become easier to get housing loan. A two bedroom flat in a metropolitan will cost up to 30 lacs, but the same will cost up to 20 lacs in a small tier 3 town. In place like Mumbai the rate is still higher. Still there is no dearth of property developers or buyers.

Those who are shifting from small towns to metropolitan cities, the first thing they do is to save some money for margin money and then take a long-term loan and buy the property. The HRA they get is used to pay of the monthly installment. The upward moving young professional are buying one property and then, going to buy the second one.

The property developers are also concentrating on this segment as it is the most viable segment right now. You won’t find any space left anywhere, if there is scope for development of property, you will find it developed. The whole scenario is of the real estate has changed.

Rental Properties for commercial use

Posted by vcode | Realestate news | Friday 8 July 2011 5:36 am


The commercial market in India has developed into full fledged market. There is property everywhere for commercial use. There is lots of space for rent, for small shops in shopping complexes to large space for office use in huge complexes. The demand is there so there is supply as well. When you visit metropolitan cities you will see huge building under construction or newly constructed buildings.

The investors are increasingly trying to take space for rent as there is lees risk if the space is on rent. Maintaining the property is also not a hassle and those who rent out the space generally maintain it. The BPO industry, the corporate, offices, mall space, shops, showrooms, etc. all come under the category of commercial rental space.

The rental period for commercial purpose is generally from three years to nine years. If you have commercial space and you want to lease it out, then it is advisable to lease it out to popular and known brand names. You won’t risk your property this way. Generally there is a15% increase in rent after every three years. So in the long run you are going to benefit from it.

If you want to have a regular income form rent, then it is advisable that you invest in mall space. You get higher rent than the office space and far higher return than the residential space.

Another lucrative prospect is the showroom rentals, the developers lease out commercial properties. Shops and department stores have become common for good value for rent. They have become popular in real estate business as they are safe and give out good returns.

Another trend seen in the commercial rental market is combining office space with service apartments, so that the executives visiting the office will have the facility of staying in these apartments that are conveniently located. There is a huge potential for growth in the commercial rental market in India. Indian property listing

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