Rental prices continue downward spiral
Average rentals in Delhi-NCR declined by 7% in the last quarter of 2013 as compared to the same quarter in 2012
The average rentals in the past quarter across rentals have declined by 6% in the fourth quarter of 2013 over the third quarter the same yearThe unit being considered is a 3 BHK house. The annual comparison (Q4-13 over Q4-12) however shows a decline of 7% in 2013, according to the 99acres. com Insite report.
The rentals in Delhi-NCR have followed a downward spiral but certain areas such as Sohna Road in Gurgaon, Green Park and Malviya Nagar in South Delhi have been outliers with a spike of 38%, 18% and 9% in rentals respectively in the fourth quarter of 2013 as compared to the fourth quarter in 2012. This spurt can be attributed to factors like availability of new houses and presence of independent builder floors which are fuelling the growth in these areas.
Localities that showed the maximum decline in rentals were Sector 37, Noida saw a decline of 9%. The rents stood at 28,900 in the fourth quarter of 2012 and were at 26,250 in the fourth quarter of 2013.
Rents in Ahinsa Khand in Ghaziabad also declined by 9%. The area commanded rentals in the region of 19,200 in the fourth quarter of 2012 and
17,545 in the fourth quarter of 2013. Rents in Rohini declined by 4%. Rents were in the region of 23,750 in the fourth quarter of 2012 and 22,716 and rents in Greater Kailash declined by 3%. They were at 54,796 in the fourth quarter of 2012 and at 53,082 in the fourth quarter of 2013.
Commenting on the report, Vineet Singh, business head, 99acres. com, said “Delhi – NCR region is witnessing a decline in transactions which is underlined by a combina- tion of factors like slackened demand for real estate, high costs of borrowing and rising inventory of projects by real estate developers. However certain pockets in the region have shown a spike in prices like Noida extension, Yamuna Expressway and Bhiwadi area near Gurgaon due to the presence of affordable range of new projects. Also, the removal of toll and launch of schemes by developers like construction linked schemes will also shore up the prospects of real estate in the region. Also, the upcoming general elections in April will also ameliorate the situation with lots of policy issues likely to move out of the limbo.”