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Rental Property in India

 

The system of rents are not new in India, rental property in India is mainly residential rentals, commercial rentals, and showroom rentals. Although rental property in India is not a new concept, yet the trends are changing. The fast evolution of rent concept in India is seen in the major cities of India, namely the Delhi, Mumbai, Kolkata, Chennai, Bangalore, Pune, and Ahmedabad. 
 
Rental property trends in India
 
Recent trends of rental properties in India show that is an immense potential of growth, revenue, and development.  Rentals values in Indian cities like Delhi and outskirts are witnessing an increase of 20-25% on an average every year. The Real estate agents are devoting themselves for negotiations of rented homes in India as it is more profitable business even when there is a sudden price rise of homes. 
 
Though the low interest rates on home loans and the continued tax exemptions on property dealings in India, inspires people to buy homes, the middle-class and the lower income group stills prefers rental accommodation to ownerships flats. Another reason for rental accommodations in India being popular is because several students, working professional move across several cities throughout their career. It is advantageous and lucrative for them to opt for houses in rent than purchasing one with huge investments. 
 

Types of rental property in India

 
In the residential segment, the capital value or cost of ownership flats has almost doubled in cities like Gurgaon where prices went up to Rs 45 lakhs from Rs 15 lakhs few years back. A place like Gurgaon and Delhi are both popular for at least three major types of rental property. 
 
Residential rental property in India
Commercial rental property in India
Showroom rentals, and
Service apartment rentals
 
 

Prices of rental property in India

 
The rents for these properties vary from state to state, and also depend on location, space, and budget. Rental property in Bangalore which is located near the commercial districts is higher than that of Kolkata. Also there are places in Delhi that cost Rs 7,000 per month for rent of 2BHK flat and also cost Rs 15,000 in another location. There are also low cost homes in the cities that would come at a reasonable budget. In Bandra Mumbai, a vacation home in rent can cost you a fortune. They are as high as Rs 25,000 per month. Similarly, rental properties in Goa along the popular beaches both commercial and residential are costlier than the ones located in the Goan village and other towns that are not prominent tourist destination. 
 
The leased out commercial properties in India also have great prospects in terms of the number of BPOs, call centers, and small organizations that are paying rents for these office space. The demand for more capital appreciation when property prices are skyrocketing in many cities has eventually enhanced the demand for rental property in India. The real estate business in India is finally depending on the revenue of the rental properties heavily.