Which is beneficial, buying a property or staying on rent? In the absence of a robust and reliable tool, these decisions were traditionally taken with gut feel or with the guidance of a close relative / friend, leaving scope for error. The real estate website Makaan.com has now launched India’s first Buy vs. Rent Index. Christened Makaan.com Buy Vs Rent Index (MBRI) the tool aims to help property seekers make informed choice between buying and renting of property in top Indian cities / sub-cities.
The launch of MBRI follows the launch of Makaan.com Property Index (MPI) which has been disseminating information regarding the movement of residential property prices in key Indian cities for over a year. MBRI aims to empower the property seeker with tools and intelligence that helps them take informed decision based on in-depth research.
MBRI, is a numerical value, arrived at after taking into account several factors including average capital value of property, average rental value, rental yield, historical capital price movement, historical rental movement and inflation. A low MBRI indicates that it is much less expensive to buy a home than to stay on rental whereas a high MBRI denotes that it is much more expensive to buy a home than to stay on rental. MBRI has been collated both at city and sub-city level.
Speaking on the initiative, Anupam Mittal, Founder & CEO, People Group says, “The MBRI is another step for Makaan.com towards becoming the trusted property marketplace for property seekers, agents, and developers. Our mission of providing real estate insight and intelligence has slowly become a reality and we hope to continue building upon the platform.”
Speaking on the launch, Aditya Verma, COO Makaan.com says, “A property seeker today is confused between opting for a rented accommodation or giving that rental amount as the EMI for buying a house. MBRI will empower him with research based analysis. We have tried to present the finding in a manner that is easy to absorb and implement. We hope that seekers will benefit from this research.”
How to interpret MBRI?
MBRI of 1-20: This denotes that it is much less expensive to buy a home than to stay on rental, in these cities / sub-cities. Property seekers looking at investing here are advised to buy a property than staying on rentals.
MBRI of 21-25: This denotes that it is relatively more expensive to buy a home than to stay on rental, in these cities / sub-cities. This is a neutral range and property seekers looking at investing here are advised to take the final decision based on their financial situation.
MBRI of 25+: This denotes that it is much more expensive to buy a home than to stay on rental, in these cities / sub-cities. Property seekers looking at investing here are advised to rent a property rather than buying.
