 |
 |
-
Real Estate India
-
Explore Inside Pages
-
News by Month
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
Lease Market Filling Investors’ Cup of Delight
| May 29, 2007 |   (1 votes, average: 3 out of 5) Loading ... |
Easy tax norms and dropping interest of people for property investments ensure a thrust in rental segment in India. As such, soaring rentals and leasing property are to of the hot topics in real estate today.
Talking about the residential segment, it is witnessing a downside in actual transactions, which has turned out to be beneficial for the lease market. But there are hopes regarding capital values to undergo corrections. Rents will go up by 20-25% because may people are putting themselves off from buying a house. Increasing interest rates on home loans is the main cause behind the scenario. However, rental houses will always remain in demand.
Experts view slowdown in real estate necessary to bring about stabilization in property prices as they were increasing exponentially for the past few years. The situation has weakened the consumers’ affordability who envisage themselves burdened by higher EMIs. For that reason, this is actually a kind of correction.
Rentals in India have picked up the pace in the past two months because of reduced investment in residential property. But, there has also been a significant drop in the actual number of apartments for possession.
A number of real estate projects in India are under construction and will be over by the next two to three years. Lack of capital with builders is one of the major reasons for a sharp fall in the supply of housing units. If the problem of shortage of funds continues to persist in future, the small property developers will be wiped off the scene.
Industry watchers see the increase in Indian rental market as a blow to the unrealistic trends in the sector. Considering ongoing fluctuations in the market, it is difficult to predict the nature of trend in future. One factor which can be kept in a direct relation with rentals is interest rates on home loans. If the rates come down, then the rentals can fall.
Another reason for the increase in rentals and lease market is the 30% tax haven that people benefit from rental income. For that reason, the trend is likely to keep up pace in the coming years.
News Published Under: Real Estate Trends |
|
Add to Favourite:
:
|
Related News:
