Renting out property an attractive option
Dwarka most preferred area for renting out homes in Delhi NCR
Mumbai, Delhi, Bangalore, Ahmedabad, Pune and Chennai have seen a significant shift in sentiment towards renting over house buying, says a report
According to Makaan.com 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.