No highs here

HT Estates - - Property / To-let Classifieds -

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.”

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