WHY INDEPENDENCE DAY?
The time is favourable, the market sentiments are improving and it is the beginning of the festive season.Many are taking advantage of this sluggish market and make the most benefit out of it. The overall real estate market is dull, but in Gujarat the trend is reverse. No doubt we don’t have a very speculative market now which we had earlier, but this period is best for real investors and end users.
The central and state governments are very proactive and giving their support for any good development. Similarly builders and developers are doing their best by not letting any genuine client walk out of their office by giving them good prices after negotiations.
BUYING A RESIDENTIAL PROPERTY
This is considered to be the best time to buy your dream home. Because of the slow and steady market the prices are in control and can be negotiated to a level which suits the pocket and budget. As there is an oversupply of residential units by the builders developers and also when government is eying to impose rental tax on unsold inventory of builder, the builder developer are also eager to sell off the inventory and thus a good bargain deal can be struck.This will create a win win situation for both builder developer and the buyer.
Also the housing loan rates are lower than before. Because of RBI’s cut in REPO rate, it is forcing banks to cut down on Housing Loan interest rates to help the public. At large to take the benefit of it, banks are rightly reciprocating this and have lowered down the housing loan interest rates.
RENTAL RETURN ON RESIDENTIAL PROPERTY
The rental return on residential property is between 0.5 per cent to 5 per cent depending on the type and location of the prop erty. A decent 2BHK flat within city area worth 40 to 50 lac will fetch rent of 12 to 15 thousand per month and same flat in the outskirts of the city will fetch around 8 thousand to 10 thousand per month.Thus purely for an investor, investing in a residential property would not be a good idea as the returns are very low. Here the only chance of you earning money will be the price appreciation of your property in future. But, for the end user this is the best time to take maximum advantage of the market situation.
BUYING A COMMERCIAL PROPERTY
Gujaratis dream of buying a commercial property to start with venture and when the time is right the chances of flourishing are great.
Starting of festival season is the most auspicious period to start any venture as the market sentiments are positive during this entire length of the season. This usually starts from the starting of the month of shravan or around August 15. This period gives a boost to the existing business and a great start to the new venture as well.Thus buying a commercial property during this time goes well hand in hand with the market and sentiments.
Prices of office space usually ranges from Rs 4500.00 sq. ft to Rs 7500.00 sq. ft depending on the area, location, amenities and facilities and the most important, parking space. The most in demand size for the office space is between 500 sq. ft to 1200 sq. ft. The maximum demand comes from new start ups ventures, IT and ITes companies and call centers. Anyone looking for expansion looks for an office space from 2000 sq. ft to 10, 000 sq. ft.
RENTAL RETURNS ON COMMERCIAL PROPERTY
Investing in commercial property is the wisest move of life. It has all the advantages of investment. Reselling is easy and rental income is good. You can sell pre leased property with additional profit margin. Any commercial office would fetch you return of 5 to 12 per cent plus the property appreciation will always be there.
If we see the price range of rentals, naked offices are available between Rs 24 to Rs 40 sq. ft and a furnished office ranges from Rs 35 to Rs 60 sq. ft.
Thus for an investor, investing in a commercial property is always more fruitful than investing in a residential project.
IN A NUTSHELL
Whether you are an investor or an end user, on this Independence Day buy yourself a property which will bring happiness and fetch prosperity in the coming years.
