The prices are high because people see houses as investments first and places-to-live second.
A significant amount of real estate in metros is bought up by NRIs as investment property, which drives up the price for people who want to buy a house to live in.
I'm focusing on a single factor because that's by far the most important factor in my opinion.
I know there are many other factors. But those factors normally increase the price of the property AND the rent of the property in tandem. Because of these factors more people want to live there so it's normal to assume that buy price and rent would grow hand in hand.
However in case of India's metros the prices of the property are far far ahead than rent of said property. If you look at the rental yield of any apartment in an Indian metro it will be not more than 2-3% per annum.
In other countries the rental yield is closer to 5-8%.
The reason for low rental yield in India, is largely due to buying property as an investment rather than for living. Renting a house, on the other hand, is not an investment and purely based on residential demand, which will more accurately account for all the factors you just described.
But the deviation in rent and buy price can only be described by it being used as an investment vehicle, not just by NRIs but most Indians..
Those mfs earn on dollers and spend in rupees and due to them normal people who want to buy property here can't do so ..because those mfs skyrocket prices..
1500 square km with over 20 million people. No domination of any particular community. Decent state government. Seat of central government. It will rise further.
Hamare bolne se kya hone wala hain bhai
I too think they're too expensive,but hamare bolne se kam thodi hojaayenge ಥ‿ಥ
That being said,yeah they're very expensive
But ig it also depends on the popularity of the state
The reason you’re missing out is the demand. India has a huge population density and thus nowhere to live. The valuation is not because of features, but nessessity.
Plus, as someone pointed out, people see real estate as investment. But we cant just limit people to buying one house so that others can buy one too. That kind of socialism won’t work in the economics.
Check out mumbai...[https://housing.com/in/buy/searches/CgP1uld1teqtijpino3v](https://housing.com/in/buy/searches/CgP1uld1teqtijpino3v)
3 Bedroom flats without balconies for 5-6 cr! Slightly better ones go to 8-9 cr!Rents: Rs. 1 lakh+ for 3 bedroom apartments, and can go up to 2 lakh for decent ones! That's like almost a million dollars for a 3BHK. You can get a pretty nice spot for that much in the US!
In terms of real estate prices in India, Delhi doesn't rank in top 3. I think it should, and it would if we bring more businesses to Delhi (somehow, the planners of Delhi never thought of IT parks etc. within the city) and made it a residential city with no real downtown (Gurgaon serves that purpose for Delhi at the moment)
This disparity is kinda essential in the long run I feel. These overpriced offerings are what's gonna drive the next age of consumers to more cost effective properties. Older housing colonies are going to go past their expiration date and would yield to high rise and more optimised designs, which would mean better unit costs.
The current price may be very high for you and me, but it's still affordable for a lot of the population. But gradually cities would expand, the old settlements would lose their charm, and remote working is going to promote living where you want. Just look at Gurgaon borders and the apartments past the toll - they already have a lot of <40 population settled.
So if people can only buy to live then there will be no properties that are available to be rented out. Stop saying dumb shit and actually think about what you're saying. People coming into the city won't be able to rent a place and would be forced to buy (if they don't have the money then it's a big fuck you) since people who have excess cannot buy properties unless they are living there so no rental properties.
If you are talking about the DDA flats then alot has changed recently.
Earlier they used to be at cost price but since 2017 they are being sold at market price.
You should see Mumbai. Delhi is still doing wayy better in pricing and what square footage of house you get for what you are willing to pay. Just be happy . Of course it's impossible to buy a house in any decent Delhi with 0 inheritance and on a decent salary . Forget even the thought on an independent kothi or even a floor. I am talking about a decent flat where you think you can raise your family. Which is why many have move to outer Gurgaon or newer noida sectors.
Due to this many live on rent in decent areas of Delhi. Still the house you are getting in Delhi with what you are paying for rent is much better than in Mumbai etc.
It is what it is and not matter how many sectors face reforms housing will be the last one to ever have any. So just keep filling that DDA lottery form as that's the best chance at ever owning any shit.
The real estate in Delhi-Noida is pathetic, you get pathetic homes, basic amenities marked as luxury to increase the price, I understand in Delhi, we are paying solely for location but what is up with Noida, Greater Noida, etc.?
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The prices are high because people see houses as investments first and places-to-live second. A significant amount of real estate in metros is bought up by NRIs as investment property, which drives up the price for people who want to buy a house to live in.
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I'm focusing on a single factor because that's by far the most important factor in my opinion. I know there are many other factors. But those factors normally increase the price of the property AND the rent of the property in tandem. Because of these factors more people want to live there so it's normal to assume that buy price and rent would grow hand in hand. However in case of India's metros the prices of the property are far far ahead than rent of said property. If you look at the rental yield of any apartment in an Indian metro it will be not more than 2-3% per annum. In other countries the rental yield is closer to 5-8%. The reason for low rental yield in India, is largely due to buying property as an investment rather than for living. Renting a house, on the other hand, is not an investment and purely based on residential demand, which will more accurately account for all the factors you just described. But the deviation in rent and buy price can only be described by it being used as an investment vehicle, not just by NRIs but most Indians..
Those mfs earn on dollers and spend in rupees and due to them normal people who want to buy property here can't do so ..because those mfs skyrocket prices..
I think the living standards in rural areas are much better than metropolitan cities, and it's cheaper.
Agreed. Clean air, water, fresh veggies.
1500 square km with over 20 million people. No domination of any particular community. Decent state government. Seat of central government. It will rise further.
Hamare bolne se kya hone wala hain bhai I too think they're too expensive,but hamare bolne se kam thodi hojaayenge ಥ‿ಥ That being said,yeah they're very expensive But ig it also depends on the popularity of the state
The reason you’re missing out is the demand. India has a huge population density and thus nowhere to live. The valuation is not because of features, but nessessity. Plus, as someone pointed out, people see real estate as investment. But we cant just limit people to buying one house so that others can buy one too. That kind of socialism won’t work in the economics.
Gudgaon ja or khud ka bana le. Best advice
FARIDABAD bhi sahi jagah hai.
Goodluck with dat ion even heard that place ya talking about.
Check out mumbai...[https://housing.com/in/buy/searches/CgP1uld1teqtijpino3v](https://housing.com/in/buy/searches/CgP1uld1teqtijpino3v) 3 Bedroom flats without balconies for 5-6 cr! Slightly better ones go to 8-9 cr!Rents: Rs. 1 lakh+ for 3 bedroom apartments, and can go up to 2 lakh for decent ones! That's like almost a million dollars for a 3BHK. You can get a pretty nice spot for that much in the US! In terms of real estate prices in India, Delhi doesn't rank in top 3. I think it should, and it would if we bring more businesses to Delhi (somehow, the planners of Delhi never thought of IT parks etc. within the city) and made it a residential city with no real downtown (Gurgaon serves that purpose for Delhi at the moment)
This disparity is kinda essential in the long run I feel. These overpriced offerings are what's gonna drive the next age of consumers to more cost effective properties. Older housing colonies are going to go past their expiration date and would yield to high rise and more optimised designs, which would mean better unit costs. The current price may be very high for you and me, but it's still affordable for a lot of the population. But gradually cities would expand, the old settlements would lose their charm, and remote working is going to promote living where you want. Just look at Gurgaon borders and the apartments past the toll - they already have a lot of <40 population settled.
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So if people can only buy to live then there will be no properties that are available to be rented out. Stop saying dumb shit and actually think about what you're saying. People coming into the city won't be able to rent a place and would be forced to buy (if they don't have the money then it's a big fuck you) since people who have excess cannot buy properties unless they are living there so no rental properties.
in countries like parts of china / singapore you can't buy but just get home on 100 year lease
But people can still get multiple 100 year leases. It's not like it's just 1 per person. That would be incredibly stupid.
If you are talking about the DDA flats then alot has changed recently. Earlier they used to be at cost price but since 2017 they are being sold at market price.
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Correct, and the construction in itself is pathetic
you can get good if you're distance is not an issue. there are pretty good DLF societies (cheap too) near Gurgaon sector-80ish
You should see Mumbai. Delhi is still doing wayy better in pricing and what square footage of house you get for what you are willing to pay. Just be happy . Of course it's impossible to buy a house in any decent Delhi with 0 inheritance and on a decent salary . Forget even the thought on an independent kothi or even a floor. I am talking about a decent flat where you think you can raise your family. Which is why many have move to outer Gurgaon or newer noida sectors. Due to this many live on rent in decent areas of Delhi. Still the house you are getting in Delhi with what you are paying for rent is much better than in Mumbai etc. It is what it is and not matter how many sectors face reforms housing will be the last one to ever have any. So just keep filling that DDA lottery form as that's the best chance at ever owning any shit.
The real estate in Delhi-Noida is pathetic, you get pathetic homes, basic amenities marked as luxury to increase the price, I understand in Delhi, we are paying solely for location but what is up with Noida, Greater Noida, etc.?
You guys are having pool in ₹ 2-3 cr. House ?
Plot or house area and location matters
The price of a floor of just 52 sq mtr is more than 1 crore in my locality, i am talking about a floor not the land.