Why India ?Back to NRI Area

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% .

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 trend in favor of the real estate sector.

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 has given a boost to the Residential sector. 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.

The retail market in India has been growing due to increasing demand from retailers, higher disposable incomes and shortage of quality space as on date. The capital appreciation in this sector is close to 20-35% p.a.

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