Apartment rentals dip 30% in south Mumbai, south Delhi and Gurgaon
Property brokers say a slowdown in the job market and commercial office space leasing over the last two years have put rentals in check
Nov 26, 2014
Source : The Economic Times

 

NEW DELHI: Apartment rentals in south Mumbai, south Delhi and Gurgaon have fallen by 20-30% in the last one year, according to property consultants.

Property brokers say a slowdown in the job market and commercial office space leasing over the last two years have put rentals in check. Compounding the problem is a rise in supply of apartments and homes in many locations. "Corporates have reduced their rental budgets for their executives, but many landlords still have unrealistic expectations," said Ramesh Nair, chief operating officer, business and national director at property consultancy JLL India. In south Delhi, rentals have dropped by up to 50% in areas like Vasant Vihar, Greater Kailash and Shanti Niketan.

In Vasant Vihar, it is down to Rs 2-2.5 lakh a month from Rs 3-5 lakh a year ago. Similarly, monthly rentals in Shanti Niketan have dropped from Rs 5-6 lakh to Rs 3-3.5 lakh levels in a year.

"Owners are finding it difficult to rent out their apartments or homes unless they are willing to reduce their demand," said Sunil Kapur of Delhi-based KK Real Estate. South Mumbai is facing a similar situation because expats have started to move towards Bandra. "In some parts of south Mumbai, you can get two-year-old rentals today. The supply is very high and demand still slack," said Mumbai-based broker Akhil Kapur of AJ Housing.

According to brokers, rentals in posh buildings in south Mumbai, such as Raheja Atlantis, Imperial heights, Samudra Mahal, Beau-Monde and NCPA, among others, are down by 10% to 30%.

"Many owners are preferring to let existing tenants continue without asking for an increase when the tenure ends," Kapur added. In Gurgaon, where several companies are setting up shop, rentals have fallen significantly. In prime projects on Golf Course Road — Pinnacle, Belaire, Palm Springs, Exotica and others —rentals have slid 30% in the past one year.

Latest Realty News

Property prices in MMR likely to correct by up to 20 pc:Survey
Nov 26, 2014
Mumbai: Piling up inventory and rising demand from home buyers may result in declines in property prices by nearly 20 per cent in the Mumbai metropolitan region (MMR)
PMC orders part demolition of three buildings
Nov 25, 2014
PATNA: Tightening its noose on illegal highrise buildings in the city, the court of Patna municipal commissioner Kuldip Narayan ordered demolition of illegal parts of three buildings
New DC wants to digitize land records
Nov 25, 2014
GURGAON: The newly appointed deputy commissioner of Gurgaon, T L Satyaprakash, want to digitize the land records and information regarding every piece of land so that it is available to all the stakeholders on the internet
CM vows more affordable housing, taps realtors
Nov 25, 2014
GURGAON: Haryana chief minister Manohar Lal Khattar said his government would take concrete steps to provide affordable housing to the people
CREDAI Conclave 2014 organized in Delhi
Nov 25, 2014
Delhi: The confederation of real estate developers association of India organized the 9th CREDAI Conclave 2014 on the theme “Clean India- Skilled India- Strong India”
Godrej Properties plans to double revenue from Gulf
Nov 25, 2014
Mumbai: Godrej Properties plans to double the share of its business from the Gulf region
National Credai Conclave to focus on 'Clean India'
Nov 25, 2014
Bhubaneswar: The Annual conclave of Confederation of Real Estate Developers Association of India [CREDAI] begun on Monday at Hotel Taj Palace in New Delhi, inaugurated by Union Minister of Urban Development
Real estate portal Housing.com ties up with Tata Value Homes to sell affordable apartments
Nov 25, 2014
BENGALURU: Real estate portal Housing.com has entered into an exclusive strategic partnership to sell apartments of affordable housing company Tata Value Homes
Draw for 25,000 DDA flats today, watch it live online
Nov 25, 2014
NEW DELHI: After a delay of 20 days, DDA will hold the draw for its 2014 housing scheme on Tuesday
Sebi prohibits two realty firms from raising funds
Nov 25, 2014
Mumbai: Clamping down on unauthorised real estate investment plans, Sebi barred two real estate companies as well as their directors from raising funds from public

Latest Realty News Of State

Realty Talk's