Sky reaching property prices will result in rising of home rentals. Home rentals will see an upward growth due to the increasing migration to the top cities.
BANGALORE: In all the top cities of India it is impossible for any middle income class person to own a home. The main reason is higher property prices. Yet, the increasing demand and shortage of supply, etc. too play their roles. Adding all together the home rentals in cities are expected to rise sharply.
Rental homes remain the possible option for a majority of residents who have migrated from other rural areas or tier II cities to top cities. Higher flow of population causes more demand for rented homes.
However there is a mismatch between the property price hike and the hike of home rentals. While property prices have shot up many doubles, the rise of home rentals was down by three to five percent down. (Compared only in proportion to the property price hike) Continue reading