An Attractive Investment Option?

Series of planned interventions by the government has recently brought in structural changes in India’s real estate industry. The government has introduced a string of economic subsidies through tax-breaks for first-time home buyers and there is a healthy supply of ready-to-move in properties in the market. But what about those who are planning for a second house? There is surely some hope in the market. New emerging rental models and investments in certain pockets in specific micro-markets would ensure higher than average rental yields. Market data shows that properties in affordable markets priced less than Rs6,000 per sqft offer a rental yield higher than three per cent while properties priced at Rs6,000 per sq.ft or more have a rental yield of two to three per cent, which is the national average. When compared with other asset classes, real estate still offers high rate of...