Mumbai slips in list of most expensive rental accommodation
Mar 07, 2014
Source : The Economic Times


DELHI: Mumbai has slipped to 28th position in the list of world's most expensive locations for high-end rental apartments sought by expats but it still remains the costliest city in India, according to HR consultant ECA International.

Mumbai was at the 17th position globally last year, but its ranking has fallen to 28th in 2014 list of most expensive locations for high-end three-bedroom rental apartments, due to rupee depreciation. Rents for an unfurnished three-bedroom apartment in a sought-after area of Mumbai average USD 3,760 per month (Rs 245,000/month).

"Mumbai remains India's most expensive location to rent a high-end three bedroom apartment and is the 7th most expensive in Asia," ECA International said in a statement.

Hong Kong remained the most expensive location in the world despite rents falling for the second consecutive year, followed by Moscow (2nd), Caracas (3rd), New York (4th) and London at the fifth position.

ECA is the world's leading provider of knowledge, information and technology for the management and assignment of employees around the world.

It publishes annual accommodation reports for more than 180 locations to assist companies in formulating accommodation policy and fix housing allowance for international employees.

The ranking is based on data from this reports, which provide comprehensive information for locations worldwide on the rental trends, types of accommodation and districts commonly sought by expatriates.

"While rental prices in Mumbai have remained largely static over the past 12 months, a weaker rupee has meant that the cost of renting a 3-bed high end apartment actually fell by about 15 per cent when converted into US dollars for comparison. Mumbai has fallen to 28th spot in the global list - down from last year's 17th position," ECA said.

New Delhi fell in the global ranking from 29th to 43rd spot. While rents in the national capital rose around 4 per cent in local currency over twelve months, the cost of renting a high-end three bed apartment fell 11 per cent in US dollar terms and 20 per cent when converted to Euros.

Rental prices in Bangalore are among some of the lowest in the survey. "Rents in Mumbai are three times higher than Bangalore, despite having risen 5 per cent over the year. The city ranks 127th globally, down from its previous 123rd spot," ECA said.

Commenting on the report, ECA International Asia Regional Director Lee Quane said that housing provision for expatriate staff is an expensive, important and often emotive element of the overall remuneration package.

"Depending on how companies provide housing or allowances to their expatriates, major currency movements can have a big impact on costs. Companies need to consider this carefully when designing their expatriate housing policy and packages," Quane added.

Rental prices were collected in September 2013 and have been converted into US dollars for ease of comparison using the September 2013 exchange rate.






Latest Realty News

Growth in restructured loan book stabilising
Mar 07, 2014
MUMBAI: Kohlberg Kravis Roberts (KKR & Co) and Blackstone Group LP, two of the major private equity (PE) investors in India, are planning to increase their exposure in the country by changing their investment strategy. While Blackstone is doing a lot of real estate investments, KKR says it will focus more on investing in stressed corporates
KKR bets on stress; Blackstone on realty
Mar 07, 2014
MUMBAI: Kohlberg Kravis Roberts (KKR & Co) and Blackstone Group LP, two of the major private equity (PE) investors in India, are planning to increase their exposure in the country by changing their investment strategy. While Blackstone is doing a lot of real estate investments, KKR says it will focus more on investing in stressed corporates.
Indian realty in search of its superbrand
Mar 06, 2014
MUMBAI: If customer satisfaction and top of the mind recall value in the collective consciousness, are two key ingredients of pushing up a company or its product as the superbrand, then the Indian real estate sector has to go a long way in creating its own Burj Khalifa. The brand consciousness is though pretty high within the sector, yet, it seems the nature of the business often creates a deep chasm between sales and brand positioning. Whether to position the company as a brand or the project w
Survey on green real estate sector 2014
Mar 06, 2014
MUMBAI : While construction processes are increasingly adopting environmental improvements, waste minimisation practices and resource inputs, are getting less attention. One of the key objectives of the national mission on sustainable habitat, released by the Indian prime minister in 2008, was to extend the energy conservation building code to new and large buildings, to ensure energy efficiency in a significant way. There is an array of challenges and barriers ailing the green real estate secto
Five sub-registrar offices in Pune to stay open for longer hours
Mar 06, 2014
PUNE: Five more sub-registrar offices in the city have begun working for extended hours and on Saturdays and Sundays to help citizens register property deals and to complete the necessary documentation.
Civic body refutes charge of levying extra property tax
Mar 06, 2014
KOLHAPUR: Various city-based organizations have alleged that the Kolhapur Municipal Corporation (KMC) is charging property tax that is 20% more than the actual amount by calculating the tax on built-up area instead of carpet area of properties.
Warrants for property tax defaulters from today
Mar 06, 2014
NASHIK: The Nashik Municipal Corporation (NMC) on Wednesday said that issuing warrants to property tax defaulters will commence in the city from Thursday.
Cuffe Parade flat fetches Rs 30 crore in public auction
Mar 06, 2014
MUMBAI: A prominent businessman outbid others at a public auction in the Bombay High Court on Tuesday with his offer of Rs 30.50 crore for a sea-facing Cuffe Parade flat. The 3,000 sq ft apartment in Maker Towers B was put up for auction following insolvency proceedings against a city businessman who owned the flat. The flat was thus sold for Rs 1.01 lakh per sq ft.
Rented offices start getting 20 times higher property tax
Mar 04, 2014
NAGPUR: Commercial establishments operating from rented premises are in deep trouble. Nagpur Municipal Corporation (NMC) is levying 20 times higher property tax to many such properties. This is due to the flaws in the existing property tax system, and inordinate delay in implementing the capital-based property tax system. Adding to the troubles, the civic body is charging high property tax with retrospective effect.
SC adjourns hearing on Campa Cola society till March 10
Mar 04, 2014
MUMBAI: The Supreme Court has adjourned hearing on Worli’s controversial Campa Cola society to March 10, as attorney general (AG) GE Vahanvatti was unavailable.

Latest Realty News Of State

Realty Talk's