As we mentioned in our previous post that RealEstateDealStreet.com will come up with some solutions to make rent affordable to prospective tenants and reduce the cost for prospective owners. Few points are mentioned below.
High Taxes on Vacant Properties: - Indian government should put high taxes on properties which are vacant. This will put pressure on owners and they will be forced to rent out their property to avoid tax. This will have a huge impact on high rentals, the market will be flooded with properties and prospective tenants will have more option and better negotiating power.
Standard Rules by all Housing Societies:- In Mumbai almost all societies have their own set of rules which is laid by the whims and fancies or selfish interest of the office bearers. There should be some standard rules by authorities on that societies should function.
Option of Switchover: - In today’s evolving environment, market dynamics change very fast and hence authorities should also act as fast. If in any market, the tide is turning from residential to commercial or vice versa, then authorities should also steer accordingly. The best example of this is locations like Cuffe Parade and Nariman Point- both these locations have very high capital value for residential but not exactly with commercial properties. Commercial properties are lying vacant since few years because there is a lack of demand as against residential properties that have a huge demand.
To validate this, is an example of the recent deals in NCPA at Nariman Point and Jolly Makers Apartments at Cuffe Parade. Both properties claimed for around 1 Lac rupees per sq. feet but in the same localities, the best of commercial buildings don’t get even half of that. Now it is high time, one decides to convert commercial buildings into residential, so as to bring some rational in these type of real estate markets.
High Transaction Cost: - Renting out property in Mumbai involves high transaction cost. The main reason is high brokerage charges. This pain point now is being addressed to by RealEstateDealStreet.com