25% Surge in rentals in India
The slowdown in property sales has fuelled a surge in the rental market in Delhi.
Delhi and NCR
On an average, the residential rental has gone up 25% in the last one year in Delhi and NCR. In many areas, it went up by even 40%,” says Anu Gupta of Century 21 India. Ashok Chauhan, a North Delhi-based broker adds: “The rental for a two-bedroom set in Delhi was about Rs 8,000 per month a year ago. However, today, it is very difficult to get a decent two-room set on the same rent even in remote localities.” According to industry officials, the high cost of properties and slackening supply of houses have fuelled rentals in Delhi. “People need a house to live in, and not everyone can buy one. With prices still beyond the reach of a large section of the middle class, staying in a rented accommodation is the only option left,” Anu Gupta says.
Sales Down – Rents Up
The other reason is that many people are shifting from South Delhi to East and West Delhi for the simple reason that rentals in South Delhi are at least 20-25 % higher compared to other parts of the capital. The economic slowdown has hit home sales and sent prices plummeting. The flip side – house rents have shot up. Rents went up by around 30% in major cities including Delhi and the National Capital Region (NCR) last year, as more and more consumers, hit by the slowdown, preferred living in rented houses to investing huge sums in properties, industry officials say.
Office Rentals
A similar phenomenon has been witnessed in the office rental market in India with many companies no longer wishing to buy office space but instead renting it. It works out cheaper to rent serviced office space and pay for what companies need and grow as and when its affordable as opposed to taking on costly overheads and leases.
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Office rentals in Bangalore
Office rentals in Chennai
Office rentals in Dehli
Office rentals in Gurgaon
Office rentals in Hyderabad
Office rentals in Kolkata
Office rentals in Nagpur
Office rentals in Mumbai
Office rentals in Pune
Tags: National Capital Region (NCR), Office rentals in Bangalore, Office rentals in Chennai, Office rentals in Dehli, Office rentals in Gurgaon, Office rentals in Hyderabad, Office rentals in India, Office rentals in Kolkata, office rentals in Mumbai, Office rentals in Nagpur, Office rentals in Pune, Rental market in Delhi, serviced offices in India, serviced offices in Pune
July 2nd, 2009 at 12:08 am
The reason for down sale and increased rentals is very simple. Companies and because groups are looking to cut their operating cost, so instead of investing heavy on buying their own premises, they are saving big by having rental spaces. This gives them facility to move over the business as per the because requirements.
July 6th, 2009 at 2:37 am
Nice Blog for Real Estate People.
July 9th, 2009 at 2:23 am
Nice Blog for Real Estate People.
Boise Real Estate