Indian Real Estate Set To Double In Coming Years Realacres

Indian Real Estate Set To Double In Coming Years Realacres

Indian Real Estate Set to​ Double In Coming Years - RealAcres
It was heard that a​ 3,475 square feet apartment in​ Nariman Point or​ the​ Queens Necklace area of​ Bombay that sold for​ whopping $1400/square feet.
It’s truly remarkable that real estate prices in​ India have almost doubled since the​ beginning of​ 2003 and​ are set to​ double once again over the​ next three to​ five years .​
Now it’s not just Tier 1 cities like Bombay, Delhi and​ Bangalore that are seeing rapid real estate price appreciation, but even Tier 2 cities like Pune, Thane, Nasik, Hyderabad, Jaipur and​ Chandigarh that are seeing property prices begin to​ climb .​
So what are the​ reasons for​ the​ property boom in​ India?
#Increase in​ demand for​ both commercial and​ residential real estate
#Low interest rates
#Tax benefits
#Rise in​ disposable income
#Growing middle class
In 1995, the​ average cost of​ a​ home was about 22 times the​ average annual salary .​
Now the​ average home costs about 4.7 times the​ annual salary of​ a​ homeowner .​
The interest rates on housing loans has decreased from 18% in​ 1995 to​ 8.5% at​ present .​
In 2000, less than 10% of​ people under 30 owned their own homes in​ India now almost 24% of​ people under the​ age of​ 30 own their own homes.
The increasing affluence of​ the​ Indian middle class and​ more liberal lending policies by banks have added to​ the​ increased demand for​ residential property .​
India is​ adding 100,000 people every day to​ its middle class, the​ fastest rate anywhere in​ the​ world .​
About 14 million college graduates are entering the​ Indian work-force every year .​
That’s astonishing to​ me at​ least .​
With job opportunities expanding in​ big cities and​ urban areas, lifestyles and​ family values are also changing .​
No longer does the​ typical Indian household consist of​ large families with parents, grandparent and​ kids often under the​ same roof .​
While demand for​ land has been increasing rapidly due to​ the​ above mentioned factors, the​ supply has not kept pace .​
a​ large percentage of​ land holdings do not have clear titles and​ is​ typically held by individuals and​ families which makes the​ organized dealing and​ transfer of​ titles cumbersome .​
Property prices are expected to​ continue northwards especially in​ Tier 2 cities where the​ appreciation has been far more muted than in​ the​ Tier 1 cities .​
I think my approach of​ acquiring residential property, leasing it​ out for​ a​ few years and​ then selling the​ properties should create a​ very exciting opportunity for​ price appreciation .​
Let me give you a​ quick personal example .​
I bought a​ 2800 square feet apartment with 4 bedrooms and​ 4 baths one and​ a​ half years ago in​ Pune at​ a​ price of​ $42.25/square feet or​ total of​ $118k .​
I​ have leased that place out for​ approximately $2,100/month with the​ tenant paying all maintenance and​ utility charges .​
At present the​ property is​ worth $60/square foot or​ $168,000 .​
So, I​ have made almost 50% on my investment plus received about $36,000 in​ rent for​ the​ last 18 months .​

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