South Delhi, Gurgaon and south Mumbai facing 30% dip in apartment rentals
From the views of property consultants apartment rents in cities such as South Delhi, South Mumbai and Gurgaon undergoes a great fall from 20% to 30% when compared to last year survey.
What would be reason for this drop down?
From property broker’s view, for the past two year’s commercial office and job market space leasing becomes slowdown and makes a check to rentals. Main reason for this problem is, in many locations there exist a sudden rise in homes and apartments supply.
According to Ramesh Nair who works in property consultancy JLL India as chief operating officer, national and business director, for executives in corporate they reduced rental budgets but unrealistic expectation is still held in most of the landlords.
Fall down details around area wise
Areas such as Greater Kailash, Vasant Vihar and Shanti Niketan in south Delhi, apartment rents falls down up to 50%. Last year monthly rents are Rs 3-5 lakh now it is Rs 2-2.5 lakh in Vasant Vihar. In the same way it was Rs 5-6 lakh per month in Shanti Niketan but it is now down to Rs 2-3.5 lakh.
From brokers point of view posh buildings such as Imperial heights, Raheja Atlantis, NCPA, Beau-Monde and some others in south Mumbai rental falls down 10% to 30%.
From the voice of experts
Delhi based KK real estate person Sunil Kapur says, only with decrease in their demand owners of apartments offer home for rent this makes them very difficult to rent their houses.
Expats are moving from south Mumbai to Bandra which is a suburb in west Mumbai.
Akhil Kapur of AJ Housing who is a Mumbai-based broker says, there would be no hike in rentals for the past two years in some areas of south Mumbai. Amount of demand for rental houses is very low when compared to supply of houses for rent.
Words of Kapur are “Owners are not asking for rental increase at the end of tenure and needs to continue the existing tenants”.
Shop settings by many companies in Gurgaon make falls in rentals so. For past one year rentals fall down to 30% in Golf Course Road’s prime projects such as Palm Springs, Pinnacle, Exotica, Belaire and others.
Article Source: The Economic Times
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