Delhi-NCR witnesses sharp rise in rentals
Delhi NCR- Renting a house in the nation’s capital is set to be a difficult task as rental values are appreciating sharply.
Rental values of properties in Delhi-NCR have seen an upsurge of 25% with rentals in most areas appreciating by 10% annually, reveals a survey.
While owning a house is beyond the reach of many people living in Delhi-NCR, in the past few years, renting has also become a difficult job. In the past two years the rental rates have increased by around 25 percent in many parts of Delhi-NCR.
Kalkaji witnessed the maximum rise of 47 percent followed by Paschim Vihar with a rise of 29 percent. Mayur Vihar Phase I (26%) stood third followed by Rohini (25%) and Patparganj (25%).
Gurgaon’s DLF Phase V area in NCR has seen 50 percent hike in rental values in the past two years. The area has seen high growth since it is in vicinity of Gurgaon’s business district and also because it offers many recreational options.
Vaishali (41%), Vasundhara (46%) and Indirapuram (34%) have also witnessed upward slope. Being a most-sought after area of middle income group for years, Noida observed 30-35 percent hike in rentals.
The upsurge in rental rates in Delhi is mainly due to the increase in demand and shortage in supply of residential units on a huge scale. According to market analysts, the present project delays, especially in the NCR, are expected to further push the rental rates and property rates.
Areas in South Delhi like Defence Colony, Green Park, Hauz Khas and Safdarjung Enclave, have not seen much appreciation owing to limited availability of houses and their existing sky-high rentals.
Increasing number of young professionals looking for rented houses, who mostly prefer to stay in apartments, have paved way for rise in rental rates in areas housing multi-storey apartments like Rohini and Patparganj. They prefer apartments as there will be no issues with power and water backups, and since they offer 24×7 maintenance and other modern amenities.
As per survey, Green Park and Lajpat Nagar areas have witnessed a slight downward slope of rentals in 2012.
However, from the investor’s point of view, rentals haven’t gone up as much as they should have. The rate of return is merely 2-3% of the property price annually.
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