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Renting Scenario in Indian Metros Business Articles | July 9 Amari Cooper Hat , 2015

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 Michael Gallup Hat , 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 Byron Jones Hoodie , 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 Maliek Collins Hoodie , 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 Jaylon Smith Hoodie , 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 Chidobe Awuzie Hoodie , metros have always been attractive to majority of people, and hence demand for rented properties will continue to exist.

Article Tags: Real Estate Prices, Renting Scenario, Indian Metros, Metros Have Taco Charlton Hoodie , Real Estate, Estate Prices, Rented Properties, Rural Areas, Smaller Towns


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