Well, residential real estate has different equation. Residential rental return is expected to be low with relatively higher capital appreciation. In commercial real estate, capital appreciation is directly proportionate to rental returns.
Moreover buying residential property is not always a financial decision, many a times it is more of an emotional decision and sense of security. Financially person may be better off staying in rental property and investing the funds in other better products.
Coming to your other point of REIT benefiting with rising rental returns, that is exactly my point is. In theory yes it is, but the way REITs in India are operating I’m not seeing this happening. REIT management is busy in acquiring assets which is not distribution accretive.
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