Residential properties – poised for a quantum leap
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The real estate market in India is a booming industry. The markets are frenzy and are largely being driven by the inclusion of foreign investments, growing interest of NRIs, expansion of IT and ITES industries, increasing popularity of electronic commerce among people, emergence of India as specialist investment centre in the world market and the growth of the Indian middle class. This boom is felt both in commercial sector as well as residential property sector.
Unlike commercial properties residential apartments are not meant for commercial purposes instead it implies apartments, condominiums, private houses, villas, multi-family housings and much more. Investing in residential properties has become the latest trend in the financial market. Commercial lands may seem profitable but the fact is that residential profits surpass them when it comes to profits. This owns its importance to the rapid growth of population around the globe. They gain profit by renting or reselling (in rare cases). Different kinds of residential apartments reap different kind of profits; they carry their own risks too.
Let me explain, condominiums are property where the owner lives in one part and the rest is shared commonly. Appropriate governance raises its value where as it’s just the reverse if governance fails, thus it value fluctuates. Private houses demand more values because of the privacy, space and comfort they provide. Multifamily housings are a specific kind of housing where a large number of individual houses are present inside one infrastructure, which guarantees a steady source of income as it is rarely empty. Do not get swayed but this boom is also being witnessed by commercial spaces as properties are being transacted at sky high prices. Unbelievable isn’t it!
The major drawbacks of residential properties are as following. In here the tenants have little or no interest in maintaining or improving the owner’s property, they contact the owner even for small problems, the leases tend to be of a short period of time, the government is bent upon protecting the tenant’s rights, the owner deals with tenants for any problem that might come up as against the case of commercial properties where there is a written agreement stating all the clauses but it has it’s own advantages too like the ones here, the banking institutions lend up to 80% of the property’s current market value, if at any point of time the property tends to be empty its very easy to find new tenants.
The growing demand for residential properties owes its significance to the shortage of housing units in India and the increasing of per capita income of people. The key factor behind the rising popularity of Indian real estate is the policies that the Indian government undertook towards foreign funds, liberalizing its trading policies towards multinational companies and joint ventures. Thus it all sums up to the point that whether or not a real estate professional you ought to know the importance of commercial properties as well as residential properties (you ought to be living in one) and the potential it engulfs in itself to rise and shine.
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Author Resource:-
Mr. Pankaj is a Seo Expert, providing Real Estate India, Residential Properties, and lot more.
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By :
Rahul Sharma
Submitted
2010-02-22 16:04:22 |
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