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How the Indian Rental Market has Changed for the Middle-Class Families. How the Indian Rental Market has Changed for the Middle-Class Families.
How the Indian Rental Market has Changed for the Middle-Class Families. How the Indian Rental Market has Changed for the Middle-Class Families.
Owing to swings in both rental costs and earnings, renting a house for a middle-class Indian has never been much complicated. Here, we shall dig out how the changed scenario in the rental cost of and the actual take-home earnings of a middle-class Indian has generated severe stress for an average Indian who is out to rent a house for himself and his family.Due to the frequent changes in incomes and rentals, renting a house and finding an affordable home for a middle-class Indian has become a tough task.
How has the income of an average middle-class Indian changed?
As we all are aware that in the year 2020-2021, economies all around the globe, including the Indian economy have been hit hard due to the COVID-19 pandemic. During 2020 India's GDP for the second quarter was almost 24% down the second quarter of 2019, as COVID-19 forced limitations on all non-essential businesses which resulted in sharp curtail of the economic activities.
It is estimated that the during the past 60 years or so, the Indian service industry has expanded from a tiny proportion of the GDP to about 54.4% in the years 2018 and 2019.For the average 60% of income earners, conversationally known as the “middle class,” incomes have risen by 49%only. This indicates that the richest Indians have gained high prosperity levels during the last fifty years, whereas the ones in the middle-income group have seen very little or absolutely no increase in wealth.
As the income increases, so does the costs of essential goods and services, like rent for affordable homes. In contrast to their richer country men who are positioned at the top 1% of the income range, the middle-class Indians are always struggling hard to keep pace with the increasing costs.
India is one of the rising economies of the 21st century. From the year 2011 and 2015, it is estimated that approximately 90 million people in India gotabove the poverty line, as a result of the robust economic growth that helped in improving the general standard of living in the country. According to a report issued by the World Bank, the Indian economies growth in the current fiscal year is expected to be 6% and isestimated to increase to 6.9% in the year 2020 and 2021 and to 7.2% for the following year. Indian economy is considered among the major developing economies, and that too, the one that is growing fast, thus becoming the focus of investors worldwide.
How has the rent transformed?
The Indian economy has seen a sharp step in the rents over the past few years, especially in the metros. The rents for residential units has increased considerably making a hole in the renters’ pocket.Metro cities like Delhi and Mumbai have become real estate hotspots and have witnessed sharp rise in the median rental is making it difficult to find an affordable home.
Owing to the steep fall in the income of middle-class Indians and the increased rents, the number of people staying in rental houses face a dramatic increased expense. According to an American survey, a household is considered to be cost-burdened, when they are spending a minimum of 30% of their monthly earnings on rent and severely cost-burdened are those who are spending a minimum of 50% of their monthly earnings on rent. The solution is to look for best affordable housing options available.
What is the way out for the middle-class Indian
The Honourable Prime Minister, Mr. Narendra Modi has launched a housing scheme for the common name, which is called the Pradhan Mantri Awas Yojana, which aims to provide affordable housing to all. OSB has constructed best affordable housingprojects thus delivering thousands of houses to the middle-class Indians looking to break free from the rental web and have a place of their own.
OSB has delivered thousands of affordable homesin Gurugram, and thousands are under construction.
How buying a n apartment under the Pradhan Mantri Awas Yojana proves beneficial Buying a house has now become simple with the country now focusing on affordable housing projects that can be easily financed through the leading financial groups of the country. Buying a house in comparison to renting a house has many benefits, few of which are:
Payment of rent is a fruitless investment whereas payment of EMIs leads to the ownership of the apartments after a certain time The increase in the rents is comparatively high in comparison to the rate of interest of the housing loans Maintenance of the rental apartment is at the will of the landlord whereas you are the boss when you get a unit financed. You can easily get the changes done as and when you want without seeking permission.
Getting an apartment financed relieves the stress of finding a new home every time the rent is increased.
Pradhan Mantri Awas Yojana has provided the middle-class Indians with the option of owning their homes and OSB is all set to offer the best affordable housing projects, plotted townships and apartments for an affordable price. With state-of-the-art construction, blended with latest technology, OSB has created a culture for healthy living. OSB’s each project boasts of clean air, lush green surroundings along with basic amenities required for healthy living.
So if you are looking for best affordable housing options or an apartment, get in touch with OSB’s sales team today who shall assist you from the preliminary stages till the final handover and that too at an affordable cost with easy finance options. Schedule an appointment with OSB’s sales team today and say GOODBYE to rental problems forever.