No highs here
on the Indian market as well, reduction in the number of new launches and delay in delivery of ongoing projects means that rentals will rise in some pockets where there is a demand and supply mismatch.
According to data made available by 99acres.com, Vaishali saw the maximum appreciation with a 19% rise in rentals in Q2-11 over Q2-10. Key localities of South Delhi and Dwarka showed that the residential areas of Kalkaji and Dwarka Sector 6 witnessed maximum appreciation. Both these areas witnessed a 13% rise each in rentals in Q2-11 over Q2-10. Other important South Delhi localities like Greater Kailash, Saket and Malviya Nagar saw rentals appreciate by 9%, 7% and 6%, respectively. Rentals in the Dwarka region have appreciated by 9% over one year with sectors 4, 12 and 18 witnessing a 10% rise in Q2-11 over Q2-10.
Last but not the least, if you thought that 12% interest rate increases have anything to do with the residential rental market, you are off the mark. Interest rates impact the capital market marginally, leaving the rental market virtually untouched, though rising costs of borrowing have a larger bearing on homebuyers’ confidence.
Tarun Yadav of D4 Real Estate Consultancy in Gurgaon points out that apartments that commanded a rent of R20,000 in the last quarter, are today going for
but high-end rentals in the region of R1.5 lakh have remained stagnant.
Shveta Jain, director, residential, Cushman & Wakefield agrees, saying, “the rental market will be impacted in the high-end segment as this is generally driven by the expatriate population. The R20,000 to R50,000 rental market is a need-based segment while this one is not.”