Real Estate Marketing & Beyond
ArthaYantra, an integrated personal financial service company started by a group of alumni of the Indian School of Business (ISB) Hyderabad, has recently conducted a research on buying a home vs. renting a home in key metropolitan areas in India. The company developed a proprietary composite score "ABRS," which integrates consumer's concern vis-a-vis ability to afford buying or renting a home.
The survey found out that Hyderabad and Pune are the most affordable places to own a house, as both prices for property and rental values in these two cities are low. The situation is similar in Chennai and Bangalore. By comparison, Kolkata is better to own a home, as it features moderate property prices, but high rental prices. Unlike Kolkata, Delhi has the lowest rental values, yet high property prices. Last, but not least, Mumbai is the least affordable city because of its high property prices and rental values.
ArthaYantra's research addresses various concerns, all revolving around the buying vs. renting a home decision. The study answers questions such as how much more money does a person need to shell out for buying a home compared to renting it? Can a buyer actually afford this additional amount? ABRSTM answers these questions by considering three important factors: rental value, property price and gross income. The ABRSTM scoring system not only tells whether it's better to buy or rent but also tells whether it's affordable to buy or rent. The complete research provides scores for each city, for professionals in different salary brackets (8-25 lakhs).
