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

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

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.”

PHOTO FOR REP­RE­SEN­TA­TIONAL PUR­POSE ONLY

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