Rental homes market across Indian metros
Every household in India has the need to buy a comfortable home for their extended families. However, buying, a home constantly involves a huge chunk of an average Indian family’s existing and future income.
Otherwise, the rental homes market plays a second fiddle even though it plays an equally important part in the scheme of things. The reasons behind this are:
This market does takes into account extraordinary figures unless one is talking about ultra luxury homes
It is comparatively trouble free to quit a bad rental home or deal
The money spent on renting a home does not amount to investment, which will fetch returns in near future.
However, the fact is that a huge section of India’s population depends on rental homes to cater to its housing needs. Residential investors may be, in part, attracted to the relatively steady income that a home put on rent can earn them.
The reality is that residential rental income in India is not a steady income for years to come. It may vary due to market conditions and political uncertainty. Residential investors are basically in it for capital appreciation a property purchase can yield over a few years, and that rental income can be the icing on the cake.
We have three models that are prevalent in our market:
Single-family rentals: Here, a single family rents a flat or a house for a fixed period and they are in control of the entire property as per the rent deed.
Such rental has seen good response since the boom in real estate across major metros of India and is the most common rental mode, given the scarcity of affordable homes despite demand being extremely high. Single-family homes can be empty, semi-furnished or fully furnished, and attract families with different needs and generate regular income for the owners.
Paying guest accommodation (PG): This is yet another form of rental housing where students, working professionals and others who need temporary accommodation are given a part of a house on rent and they have the option to share the premises with the owner. It is ideal for those with budget constraints looking for residential options. The downside would be the lack of independence.
Shared apartments: Working individuals can take such apartments on rent or students can pool their money to rent an apartment and live in it together, they have the luxury to stay on their own terms and certainly without the limitations of a PG scenario. They have luxury to enjoy their own privacy and do not come under the owners’ scrutiny unless there are issues with other apartment owners, or the apartment is not used as specified in the rental agreement.
Like PG accommodation, the shared apartment model is popular in areas, which have educational institutions or office complexes in the neighborhood
Resale flats in Bangalore
Since the advent of IT boom and migration of professionals to this city, construction activity has increased on a large scale in Bangalore and its suburbs. However, the unsold property is at its peak and there are hundreds of flats lying vacant and are listed for resale in the market. Such flats command a huge response from the public who otherwise missed out in buying a property for one or the other reason.
Resale flats are being offered at a discount which otherwise was unsold due its high value. Flats of different carpet area are all on offer and there is plenty of option to choose from.
With wide range of options on the table, a prospective buyer can invest his money wisely without fear of losing his investment in such second hand flats which come with all the amenities and facilities.
With large number of resale flats on offer, Bangalore is leading the pack among all the metro cities where such flats are being offered without any strings attached.
It is worth investing in such flats where the resale value is comparatively less compared to a new brand new Flat.
