BHUBANESWAR: The rental market in the city has hit a downward spiral. Houses in several localities in the state capital are now available at rents lower compared to that in even district towns.
A two-bedroom, hall-kitchen (2BHK) house with two toilets and a balcony in multi-storey apartments is available for a monthly rent of Rs 4,000 in Sundarpada. "I had taken possession of a house last year expecting a monthly rent of at least Rs 7,000. Since nobody is willing to stay, I have now decided to sublet it for Rs 4,000 per month," said M K Pradhan, a software engineer working in Pune.
Such low rent rates were unheard of in the city as the rate for two bedrooms in prime localities such as Saheednagar or Satyanagar had crossed Rs 10,000. Though the cost in these localities has not come down as yet, several houses are lying vacant, indicating a downward revision in the near future.
New apartments on the Cuttack side of Daya West Canal such as GGP Colony, Bhagabatsandhan and Nigamananda Nagar are offering two BHK houses at rents of Rs 6,000 per month compared to Rs 7,000 to Rs 7,500 for such houses which were sublet around a year ago. 3BHK houses are available below Rs 10,000. Two-room accommodation in Chandrasekhapur and Patia are available at less than Rs 7,000 per month, which one couldn't have thought of in the end of 2012 and most of last year.
The rent is lower compared even to the district towns. A 2BHK house in Keonjhar, Sambalpur and Jharsuguda too cost around Rs 4,000 to Rs 5,000. Realtors said sudden availability of flats had lowered the rent in the state capital.
"The city has added at least 70,000 housing units in the period 2010-2013. Since the majority are investor-buyers staying elsewhere, these have mostly added to the stock of houses on rent. However, the city is not adding significant number of tenants seeking houses on rent," said Pradipta Biswasroy, president, Real Estate Developers' Association of Odisha (Reda).
The rent of houses on the city's periphery seem lower compared to core areas of some district towns where the supply of housing stocks are still less compared to the demand, he said.
Experts said people staying in rented places are not increasing. "Hundreds of residential projects came up in past five years, giving people options to own houses , reducing the number of tenants," said Surendra Behera, a former director, town planning and chairman, Institute of Town Planners' India, Odisha chapter.