Rent­ing out prop­erty an at­trac­tive op­tion

Dwarka most pre­ferred area for rent­ing out homes in Delhi NCR

HT Estates - - Front Page - HT Es­tates Cor­re­spon­dent

Mum­bai, Delhi, Ban­ga­lore, Ahmed­abad, Pune and Chen­nai have seen a sig­nif­i­cant shift in sen­ti­ment to­wards rent­ing over house buy­ing, says a re­port

Ac­cord­ing to Buy vs Rent In­dex (MBRI), key real es­tate mar­kets in In­dia have moved from be­ing a place for buy­ing and in­vest­ing to rent­ing. Buy­ing a home has never been easy, es­pe­cially in the Met­ros. The MBRI sug­gests that prop­erty seek­ers adopt a “wait and watch” ap­proach an­tic­i­pat­ing a fall in prices and a drop in home loan in­ter­est rates.

It has been ob­served that cities like Mum­bai, Pune, Delhi, Chen­nai and Ahmed­abad are pre­ferred for rent­ing whereas Ban­ga­lore and Hyderabad are in the neu­tral zone.

Over­all a lower MBRI (un­der or equal to 20) in­di­cates a pref­er­ence for buy­ing vs rent­ing and a higher MBRI (over 25) in­di­cates a pref­er­ence for rent­ing over buy­ing. MBRI of 21 to 25 is a neu­tral zone where the per­son can take a de­ci­sion based on his liq­uid­ity po­si­tion

The in­dex for the city of Delhi NCR has moved 9 points fur­ther on the rental scale from Jan-March 2011. The city has re­tained its pref­er­ence for rentals. The NCR re­gions like Noida and Gur­gaon that were in the buy­ing rat­ing in 2011 have moved to neu­tral and rental zones, re­spec­tively.

How­ever, as com­pared to the main city of Delhi, the NCR still re­mains af­ford­able. Home­buy­ers are ad­vised to pur­chase prop­erty in Ghazi­abad and Noida de­pend­ing on their fi­nan­cial con­di­tion as MBRI for th­ese sub­c­i­ties lies be­tween 21 and 25. Farid­abad is a re­gion in Delhi NCR that shows an in­ter­est­ing trend; the re­gion has the same MBRI points for JanMarch 2011 and Jan-March 2013, ie 19. It re­mains in the buy­ing zone and in­vest­ing in prop­erty there is highly rec­om­mended.

Among ar­eas that should be pre­ferred for rent­ing, Dwarka takes the lead. In Dwarka, the MBRI has jumped the high­est in two years at 20 points.

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