Quote:
Originally Posted by roshan.sharda
The assumption is wrong and I it can be expected that real estate prices will go up by atleaset 7% annualy. Even it this case the prices will go up to RS 2.32 crores in 20 years for a 6 Lac flat currently.
Also the the rents will increase by 10% say for next ten years annually given indian economy is growing and then by 8%, so a rent of 2.64 lcas (RS 22000 monthly) will be payable for the falt will become 11.10 Lcas in next 20 years.
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No country sustains that strong growth for 8-10%. Yes Rent and property price are relative to certain extend. Since if Property prices are high people tend to rent and hence rental demand go up which stabalises the rent. On other hand if rental is going up then people tend to buy on loan and rental demand goes down bringing the rent down....