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News & Views on Indian Real Estate

Thursday, December 27, 2007

High Rental Rates - spoilsport for big corporates

There are many factors which need to be considered when calculating how much rent to charge. Choosing the correct price means you get the most rent for your property – (Residential / commercial) without scaring away potential tenants by overpricing.




Location: The real estate advantage "location, location, location" applies equally to rental values as to selling values. In other words where your property is located well, to a large extent, determine how much you can realistically ask in rent. Its proximity to desirable venues such as Major bus terminals, Railway stations, national and international airport, universities/colleges or sporting/special events will impact on the demand and therefore the rental value.


The real estate rental trends in the commercial sector are momentous as the key tendency among the investors is to rent a commercial space instead of buying since it facilitates low risk and less worry on maintenance. Commercial Rentals including corporate office space, BPO spaces, mall space, shops and Showrooms are an integral part of the commercial rentals in India. As per the article published by one of the economic daily high rentals has become a stumbling block for the retail expansion in India. It has stated how high rental rates have become a hindrance to growth of many corporate. If this situation will continue for long do we think India will develop at the projected growth rate? How can the present situation be turned to a win-win situation from win-loose situation?

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