[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"homepage-faqs":3,"blog-why-btr-is-the-future-of-rental-housing-in-india":34,"footer-social-contacts":84},[4,7,10,13,16,19,22,25,28,31],{"answer":5,"question":6},"\u003Cp> The application process is typically like a KYC process to get to know our customers. \u003C/p> ","What is the application process like?",{"answer":8,"question":9},"\u003Cp> The rental contract is for a standard of 11 months. However, you can choose how long you want to stay. \u003C/p> ","What are the common lease terms?",{"answer":11,"question":12},"\u003Cp> Yes, you have the option to renew your rental agreement whenever you wish to. \u003C/p> ","Can I renew my lease at the end of the term?",{"answer":14,"question":15},"\u003Cp> Lock in period is a commitment given by the tenants to us in order to avail free common area maintenance charge. Lock-in period should be a minimum of 6 months to avail free common area maintenance charge. \u003C/p> ","Is there any Commitment/Lock in period?",{"answer":17,"question":18},"\u003Cp> No, once the contract is made you cannot update or change the lock-in period or any other terms. \u003C/p> ","Can you renew or update only the lock in period?",{"answer":20,"question":21},"\u003Cp> Being fair &transparent is our core value and we inform all our tenants about our terms &conditions in detail prior to the booking. There are no hidden charges or terms. \u003C/p> ","Are they any hidden charges?",{"answer":23,"question":24},"\u003Cp> Both aspects operate independently. Contract period is the 11 month legal term under which tenants will rent the flat with KOTS. Renewal of contracts is possible. On the other hand, the lock-in period refers to the duration for which the tenant commits to remain without terminating the contract, enabling them to take advantage of the free common area maintenance charges offered. \u003C/p> ","What is the difference between contract period and lock-in period?",{"answer":26,"question":27},"\u003Cp> The common area maintenance charges offered will be reversed and you will be charged monthly common area maintenance charges for the entire stay duration. \u003C/p> ","What happens if you terminate the contract (or) vacate the home during the Lock-In period ?",{"answer":29,"question":30},"\u003Cp> Yes, the tenants have to serve 45 days notice period before they terminate the contract. \u003C/p> ","Is there any notice period to terminate the contract?",{"answer":32,"question":33},"\u003Cp> Move out charges include painting charges to be paid (one time) by the Sub-Lessee in advance or in pre-paid manner at the time of booking the flat. If the rented flat is of Studio / 1BHK flat, painting charges are Rs 14,500 (Fourteen thousand five hundred.) and if the rented flat is a 2BHK flat, painting charges are Rs 19,500 (Nineteen thousand five hundred.).\u003C/p>","Are there any painting charges or move out charges?",{"addedDate":35,"author":36,"authorImage":37,"banner":38,"category":39,"categoryCount":40,"contents":41,"excerpt":77,"meta":78,"slug":81,"status":82,"thumbnail":83,"title":80},"14-08-2025","Aswath Jayavel","https://www.w3schools.com/howto/img_avatar.png","17054651985908BTR.jpg","Real Estate",1,[42,45,47,49,51,53,55,57,59,61,63,65,67,69,71,73,75],{"content":43,"type":44},"\u003Cp>Rental housing in India is one of the oldest business of the civilization, people have shared their space to profit out of it for a long time now. Over the period of time, people rented the free space in their premises then bought pre-built houses to rent or rented their old house after they shift. But now is the era of built-to-rent (BTR) where the houses are built to suit the preferences of the renter and the houses will only be used for residential renting and nothing else.\u003C/p>","text-block",{"content":46,"type":44},"\u003Ch3>PROBLEMS:\u003C/h3>",{"content":48,"type":44},"\u003Ch4>National challenges\u003C/h4>",{"content":50,"type":44},"\u003Cp>\u003Cstrong>Urbanization\u003C/strong>\u003C/p>",{"content":52,"type":44},"\u003Cp>Though Indian cities are home to a minority population, they contribute to \u003Cb>2/3\u003C/b> of the nation’s economic output. A total of \u003Cb>17 \u003C/b>of the \u003Cb>20 \u003C/b>fastest-growing cities in the world between \u003Cb>2019 \u003C/b>and \u003Cb>2035 \u003C/b>will be Indian, an \u003Ca href=\"https://www.oxfordeconomics.com/\" target=\"_blank\">Oxford Economics\u003C/a> report has said. The Indian middle-class population is expected to have a growth rate of \u003Cb>8.3%\u003C/b> until \u003Cb>2030 \u003C/b>doubling its middle-class population. So, the spending share (consumer spending) of the Indian middle class is expected to grow to \u003Cb>80%\u003C/b> accounting for an additional \u003Cb>$1 trillion\u003C/b> in consumer spending by \u003Cb>2030\u003C/b>. The Indian urban population is said to contribute about \u003Cb>75%\u003C/b> of the total \u003Cb>GDP\u003C/b> of India by \u003Cb>2030\u003C/b>.\u003C/p>\u003Cp>A\u003Cb> 2.5X\u003C/b> increase in consumer spending and a \u003Cb>25%\u003C/b> increase in the urban population results in a lot of people ready to spend a lot of money to get their needs fulfilled (housing), mainly in the urban areas of India leading to a huge increase in demand for urban housing.\u003C/p>",{"content":54,"type":44},"\u003Cp>\u003Cstrong>Slow Infrastructure\u003C/strong>\u003C/p>",{"content":56,"type":44},"\u003Cp>\u003Cb>BTR\u003C/b> is a rental model that focuses on giving people a place to live that is affordable, livable and making sure that investors are ready to help build those structures. BTR makes this possible by making sure that the model is organized, optimized and \u003Ca href=\"https://www.kots.world/blog/features-of-urban-gated-apartments-ecofriendly-and-sustainability\" target=\"_blank\">\u003Cb>sustainable\u003C/b>\u003C/a>.\u003C/p>\u003Cp>Real estate in India is an unorganized market and unorganized markets are bound to have information asymmetry. 10.2 million houses in the country are lying unoccupied. This statistic is in sharp contrast to the fact that there is in fact a grave shortage of 19 million houses in India. This information failure in the market is haunting builders and landlords as they have very limited knowledge about customer preferences. An organized model such as BTR will be able to gather adequate information and work towards bridging the gap in the market.\u003C/p>\u003Cp>Ex: An informed decision on the house sizes will allow builders to be more Precise on their structural needs and address the changing demographics increasing the probability of occupancy.\u003C/p>\u003Cp>Purpose driven products will help fill the gaps in value creation and optimize the value chain. BTR enables higher predictability, maintainability and better product-tenant-fit. Houses built in the BTR model could push the rental yield from 3% to 8%. Maintenance and refurbishing costs are also reduced by half. \u003C/p>\u003Cp>Finally, longevity and sustainability of the product can be significantly enhanced. Precocious preparedness is essential for longevity. ‘Bangalore is said to be the first city in India to run out of drinking water by 2030’. BTR can solve this problem because any builder or promoter has sale as his primary interest, while BTR is managing the property for years to come. So, it is in BTR’s interests to keep the property sustainable.\u003C/p>\u003Cp>These characteristics of BTR makes it the appropriate solution for addressing the problems of residential renting in India.\u003C/p>",{"content":58,"type":44},"\u003Cp>Another example stating demand for housing is that around \u003Cb>27000 \u003C/b>average searches for \u003Ca href=\"https://www.kots.world/bangalore/flats-for-rent-in-whitefield\" target=\"_blank\">flats and houses in Whitefield\u003C/a> -Bangalore is recorded, while on an average, there are only \u003Cb>350 \u003C/b>listings present in the property listing sites. Every year, Less than \u003Cb>10%\u003C/b> of the demand is fulfilled in terms of units and investment. With infrastructure developments happening at this rate, by \u003Cb>2030 \u003C/b>people will need a lot of houses and every affordable house in urban areas will have 2X applications resulting in housing scarcity.\u003C/p>",{"content":60,"type":44},"\u003Cp>\u003Cstrong>Mismatched Preferences\u003C/strong>\u003C/p>",{"content":62,"type":44},"\u003Cp>Currently \u003Cb>34%\u003C/b> of the Indian population are millennials, the millennials and\u003Ca href=\"https://www.britannica.com/topic/Generation-Z\" target=\"_blank\"> \u003C/a>\u003Cb>\u003Ca href=\"https://www.britannica.com/topic/Generation-Z\" target=\"_blank\">Gen Z\u003C/a>\u003C/b>\u003Ca href=\"https://www.britannica.com/topic/Generation-Z\" target=\"_blank\"> \u003C/a>will double in the next 5 years accounting to \u003Cb>77%\u003C/b> of the total Indian workforce. According to \u003Cb>99acres.com\u003C/b>, ‘generation y (millennials) sees homeownership differently than their parents. Earlier, generations moved to outlying areas to their homeownership ambitions, but millennial refuse to do so. Connectivity to their workplace, convenience, and security are the primary criteria that comes first in their decision-making process, not property ownership. \u003C/p>\u003Cp>A good lifestyle is a pressing priority and an ongoing need. Adding to that people prefer managed and ready-to-move-in houses that are well managed by institutions therefore complications such as security deposit, notice periods and monthly lease are easily managed, social \u003Ca href=\"https://www.kots.world/blog/checklist-for-renting-a-flat-in-india\" target=\"_blank\">\u003Cb>concerns of renting house\u003C/b>\u003C/a> to young people and single professionals are diminished and problems with housekeeping, utility bill payment, maintenance, furniture and fitting are no more the concerns of the renter. \u003C/p>\u003Cp>A housing crisis occurs when affordable housing becomes scares. Urbanization will bring in more people to the cities increasing demand. Slow infrastructure will further increase the unmet demand adding to the price, while all of this coupled with preferences of new age client will create the next housing crisis of India.\u003C/p>",{"content":64,"type":44},"\u003Ch4>Sustainability Goals\u003C/h4>",{"content":66,"type":44},"\u003Cp>Global carbon emission from the real-estate sector stands at \u003Cb>40%\u003C/b>, and \u003Cb>70% \u003C/b>of the total carbon emission from the real-estate is from urban areas. In a heavily growing population, carbon emission is listed among the most pressing concerns of the world in upcoming years. According to \u003Ca href=\"https://www.mckinsey.com/\" target=\"_blank\">Mckinsey\u003C/a> report (de-carbonization of industrial sectors), ’it is estimated that \u003Cb>$21 trillion\u003C/b> is needed just to decarbonize four industrial sectors by \u003Cb>2050\u003C/b>’.\u003Cbr>The basic criterion for a home is to have a habitable environment but as per \u003Cb>\u003Ca href=\"https://www.teriin.org/\" target=\"_blank\">TERI\u003C/a>\u003C/b>, ’half of the Indian urban population will face acute water scarcity by \u003Cb>2050\u003C/b>.\u003C/p>\u003Cp>According to the World Bank, ‘\u003Cb>100%\u003C/b> of the Indian population is said to be affected by \u003Cb>PM2.5\u003C/b> levels in the air’. It is evident that managing of the environment and locality is vital for habitable living. According to Worldgbc, ’\u003Cb>28% \u003C/b>carbon emission is from operated heat, cool and performance’. Measures to reduce power consumption and maintain usage is needed to create a comfortable living.\u003C/p>\u003Cp>\u003Cbr>\u003Cb>63% \u003C/b>of leading investors agree that green structures can drive higher occupancy, higher price, higher tenant retention and higher value. – \u003Cb>JLL\u003C/b>’s report on decarbonizing the built environment. \u003C/p>\u003Cp>\u003Cb>150 million\u003C/b> tons of construction and demolition(C&D) waste every year, India recycles only \u003Cb>1%\u003C/b> of its \u003Cb>C&D\u003C/b> waste. Minimizing waste and building reusable inventory is essential to have a prolonged housing solution.\u003C/p>",{"content":68,"type":44},"\u003Ch4>Financial Challenges\u003C/h4>",{"content":70,"type":44},"\u003Cp>Real-estate being a limited resource needs heavy investments with an average of 6-7k/Sq.ft in urban localities of India, however, people continue to invest because it is much safer than alternative investments such as stocks and crypto. But Investors nowadays face difficulties in continuing to invest due to fluctuating market trends resulting in 11.09 million vacant houses and it is difficult to cope with changing repo rates in India. As of November 2022, the repo rate has changed 4 times that year. A more stable market is expected by the investors to get a safe haven for their investments.\u003Cbr> \u003Cbr>According to \u003Ca href=\"https://99acres.com/\" target=\"_blank\">99acres.com\u003C/a>, \"a well-maintained household in urban areas is said to spend an average of Rs.3.5-4/Sq.ft per month to maintain the standards of the house\". In addition to this, the house needs to be renovated every 8-10 years to meet the living standards of a tenant but only a negligible number of Indian landlords have maintenance and renovation cycles leading to vacant properties even in megacities like Mumbai. Property maintenance acts as a pain point for a lot of Indian landlords who rent.\u003C/p>",{"content":72,"type":44},"\u003Cp>\u003Cstrong>Low Returns\u003C/strong>\u003C/p>\u003Cp>Indian residential \u003Ca href=\"https://www.kots.world/blog/rental-yield-in-india-unlocking-the-profit-potential\" target=\"_blank\">\u003Cb>rental yields\u003C/b>\u003C/a> are among the lowest in the world at about 2-3% discouraging landlords. FDs and PPFs give better yields with more security compared to rental yields.\u003C/p>\u003Cp>High investment combined with high maintenance makes Indian rental real-estate an expensive buy, not to mention the low returns that fear away investors and landlords, making \u003Ca href=\"https://www.kots.world/blog/real-estate-investment-in-india-2024-expert-insights\" target=\"_blank\">Indian residential real-estate\u003C/a> a tough nut to crack. This has drastically reduced the no of Landlords over the past decade resulting in an insufficient supply of rental properties.\u003C/p>",{"content":74,"type":44},"\u003Cul>\u003Cli>Will people have a place to live?\u003C/li>\u003Cli>Will the house be livable?\u003C/li>\u003Cli>Are people ready to help build?\u003C/li>\u003C/ul>",{"content":76,"type":44},"\u003Cp>According to a report by RICS and Knight Frank, ‘India will need an additional 25 million houses by 2030’ but ‘on an average only 0.45 million units of housing are built every year' according to a report by Anarock property consultants. Similarly, a World bank survey states that India needs about $55 billion in infrastructure every year to cope up with the growing needs of urbanization in India but the revised(increased) budget is just $10 billion allocated yearly by the Indian government as of 2022.\u003C/p>","Explore why Build-to-Rent (BTR) is revolutionizing India’s rental housing market, offering quality homes and stable returns for investors.",{"metaDescription":79,"metaKeyword":79,"metaTitle":80},"","Why BTR is the Future of Rental Housing in India?","why-btr-is-the-future-of-rental-housing-in-india","success","17054617876195BTR.jpg",null]