Indian market is ripe for rental real estate market. However, builders and real estate companies find it a major challenge to build a project exclusively for rentals, as yields are very low: Gautam Thapar, Thapar Builders
Gautam Thapar, director of Thapar Builders (P) Ltd, said in an inter view with Times Property that In dia’s residential rental market is completely run by individual home owners and is more realistic.
Realty firms find it a major challenge to build a project exclusively for rentals, as rental yields in the residential space are only about 3% per annum of the capital value of the underlying asset and this is not an attractive business proposition. The company is developing a luxury housing project, The Arthah, in Vaishali, with both rental and outright-sale segments. The group also plans to soon launch two residential projects, one on GT Road, Ghaziabad, and the other near the ring road in Maharani Bag, New Delhi, with the second one exclusively for rent-out purpose.