WHY TO BUY PROPERTY IN INDIA

According to a recent study, returns from rental incomes on investment in commercial property, in metros, is around 10.5%, the highest in the world. Real estate in India is now considered as one of the hottest investment options as compared to bank deposits or bonds where your return ranges between 5.55 to 6% and that is why more and more people are inclined to buy property in India.

Revived demand since 2004 has led to the firming up of real estate markets across the commercial, residential and retail sectors. The supply just about matches demand in almost all metros around the country and there has been an upward pressure on the real estate values. Due to the heavy demand and upward prices, investment and speculative interest in real estate is growing while excess money supply, stock market gains and policy changes are adding to the investment trend to woo domestic as well as NRIs and others to buy property in India.

In the last one year the capital values of the commercial office spaces has increased by up to 40% owing to the increase in the demand from IT / ITES and BPO sector across major metros in India.

Lower interest rates, easy availability of housing finance, growing salaries and job prospects have given a boost to middle & upper class to buy property in India. The net yields (after accounting for all outgoings) on residential property are currently at 4-6% p.a. However, these investments have benefited from the improving residential capital values. As such, investors can count on potential capital gains to improve their overall returns. Capital values in the residential sector have risen by about 25-40% p.a in the last 2 years as a result most of the people like to buy property in India.