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NEW DELHI: High-end residential real estate does not seem to interest the high networth individuals (HNIs) and the emerging HNIs anymore. The HNIs and emerging HNIs are now moving towards pre-leased or leased out commercial space, according to industry sources. And that may explain why HNIs' exposure to real estate has not dwindled as yet. In fact, the Asia-Pacific wealth report stated the HNI exposure to real estate had increased from 17% in 2005 to 23% in 2007 and the prime reason for that are steady returns from commercial real estate. "Returns and income stream are more stable in commercial real estate. On the other hand, residential real estate has seen a decline in speculative investments and also a lack of genuine buyers, post March," says Amit Mookim, director, Strategic and Commercial Intelligence, KPMG. SundayET spoke to Krish Arora, a 40-year-old CEO of an HR firm who recently sold off his high-end residential property in DLF phase-I to invest in a leased out commercial office space on Sohna Road. "I know juggling my money like this will bring about a higher incidence of tax, but attractive rental yields ranging from 8.5-10% were a strong incentive for me to do so," he said. Industry experts estimate that around 30% of the country's real-estate growth during the last one year, has been in commercial space. The demand for commercial real-estates has been phenomenal during this period despite the negative sentiments reining in the global economy. http://forums.investorline.co.in/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
