Growth mode: Jalandhar rentals on a stable ground
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
Rentals in Jalandhar stabilised after nearly three years of decline.