Growth mode: Jalandhar rentals on a sta­ble ground

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent ht­es­tates@hin­dus­tan­times.com n

CHANDI­GARH: The slow­down has im­pacted the way the rentals in Jalandhar have moved up and down in the last few years. The trend of cap­i­tal val­ues of com­mer­cial prop­er­ties look at an up­turn is closely fol­lowed by a trend of com­mer­cial rentals sta­bil­is­ing.

Sta­bil­ity in the com­mer­cial rental seg­ment is more pro­found than the res­i­den­tial rental mar­ket. While the com­mer­cial rentals fell in the last few years, the res­i­den­tial rentals have stag­nated.

“Af­ter a re­vival in de­mand from the re­tail and fi­nan­cial in­sti­tu­tions, the com­mer­cial rentals are on a re­cov­ery path. Un­der the im­pact of the realty slow­down, the sup­ply con­tracted as the new sup­ply of com­mer­cial spa­ces wasn’t added to the mar­ket. Now, with de­mand re­vival for com­mer­cial prop­er­ties the rental seg­ment is ben­e­fit­ing,” says, Smar­jeet Singh, 40, a lo­cal real es­tate con­sul­tant.

Com­mer­cial rentals de­pend on the lo­ca­tion of the prop­erty. In the pe­riph­eral ar­eas, rentals are less than more de­vel­oped ar­eas like Model Town and Lajpat Na­gar.

“Com­mer­cial rental in ar­eas like Model Town varies be­tween ₹100 per sq ft per month to ₹150 per sq ft per month. Here most of the big­ger re­tail stores are lo­cated. On the GT Road, there is more de­mand for of­fice spa­ces, and the monthly rental varies be­tween ₹50 per sq ft to ₹100 per sq ft. In the pe­riph­eral ar­eas, com­mer­cial prop­er­ties are avail­able at a monthly rental of ₹50 per sq ft,” said Singh. In the last three years, the rental fell by from the peak range of ₹150 per sq ft – ₹200 per sq ft to the cur­rent peak range of ₹100 per sq ft to ₹150 per sq ft. “The de­mand for the com­mer­cial spa­ces fell sharply as the mar­ket was hit by slow­down. Now, this is chang­ing so greater sta­bil­ity,” says Manoj Garg, 49, a lo­cal re­al­tor.

In the res­i­den­tial seg­ment, the slow­down didn’t lead to de­cline in rental val­ues.

“The de­mand in the re­nal res­i­den­tial seg­ment is de­pended on the end-user de­mand, and it is a steady de­mand. Eco­nomic slow­down, gen­er­ally, doesn’t im­pact the rental growth in the res­i­den­tial seg­ment. Some­times, if fact, slow­down might im­pact pos­i­tively the res­i­den­tial rentals as more and more peo­ple de­fer their buy­ing a house de­ci­sion and opt to live in a rented ac­com­mo­da­tion,” says Garg.

Cur­rently, the res­i­den­tial rentals vary de­pend­ing on the lo­ca­tion, size and type of prop­erty.

“For a 2-BHK (bed­room, hall, kitchen) the rental vary be­tween ₹10,000 to ₹15,000 per month. For a 3-BHK, the rental is around ₹15,000 to ₹20, 000 per month. An in­de­pen­dent kothi is avail­able in the range of ₹20,000 per month to ₹80,000 per month rental, de­pend­ing on the lo­ca­tion and size of prop­erty. In the apart­ment seg­ment, monthly rental for a 3-BHK is be­tween ₹15,000 and ₹20,000 per month. For the 10,000 sq ft pent­houses, the monthly is up­ward of ₹80,000,” says Singh.

The com­mer­cial seg­ment is ex­pected to con­tinue the trend of pos­i­tive growth be­cause of sup­ply-de­mand dy­nam­ics. Lo­cal realty ex­perts say the end-user de­mand for com­mer­cial spa­ces in the face of re­stricted sup­ply will push up the rental val­ues. In the res­i­den­tial seg­ment, the rentals are ex­pected to grow at a sta­ble rate.

COM­MER­CIAL RENTALS DE­PEND ON LO­CA­TION OF THE PROP­ERTY. IN THE PE­RIPH­ERAL AR­EAS, RENTALS ARE LESS THAN MORE DE­VEL­OPED AR­EAS LIKE MODEL TOWN, LAJPAT NA­GAR

HT PHOTO

Rentals in Jalandhar sta­bilised af­ter nearly three years of de­cline.

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