WHAT’S THE PROPERTY SCENARIO IN INDIA?
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WHAT’S THE PROPERTY SCENARIO IN INDIA?

According to the ministry of urban development and planning, the percentage of Indian urban population is likely to grow from 35% to 45% over the next 15 years, while India’s population is likely to cross 1.25 billion by then. We need to therefore double the scale of our urban Infrastructure (built over the last 150 years) within the next 15 years.

A whopping 52 crore Indians are below 25 years of age and are offered jobs and starting salaries as never before. Indian salaries during the last 5 years have grown at the rate of 15% per annum – by far the highest in the world. In the year 1009, it is expected to rise by a whopping 16% despite the slowdown in the global economy. India’s working population is likely to double in the next 15 years. Disintegrating joint families mean that there would be a greater demand for homes (perhaps of smaller dimensions than before), places for shopping and entertainment. Rajarhat could also provide jobs to a large number of people through the numerous commercial projects and IT firms that are setting up shop in the area.

Home buying is a wealth-creating instrument, helping the middle class salaried individual to save taxes, while their investments witness a steady rate of appreciation. Over 80% of the apartments booked today are done so by actual buyers, with the help of home loans. And 65% of them fall in the age group of 25-30 years.

India is probably the only country which offers rental returns of over 12-15% per annum from rented properties. In addition to that, most of the rental agreements have a clause which makes it clear that rents will be enhanced up to extent 5% every three years. There is an acute shortage of rental property stock in India. With a growing economy and the influx of expatriate employees, the demand for rental properties in India is growing exponentially.

Courtesy HT-dtd -17-01-09:

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