Rentals are falling in Hyderabad and Bangalore by about 30-40%
Posted on Jan 30, 2009
If you are looking to rent a house or going for an extension in your contract, make sure that the owner drops the rental in line with the current market rates. Residential rentals in cities like Hyderabad and Bangalore have fallen by close to 30-40% in the last six months. While commercial rentals have fallen by about 20-35% in last six months and reaching up to 50% in some specific cases.
What are the reasons for fall in rentals
- Recession: The economic recession, which has led to job cuts and lower pay hikes, has forced many to either vacate their homes or go in for more affordable rentals.
- More supply than demand: This, combined with an increase in brand new flats, has created a huge supply in the market and left landlords with no choice but to drop prices.
- Commercial establishments are finding hard to pay higher rentals as the business volumes have dipped substantially
Rental watch
Rentals in Bangalore
- Two-bedroom Kodihalli 1st Main, near Indiranagar 2nd stage, Rs 12,000 a month rent inclusive of maintenance (Six months ago was Rs 18,000 exclusive of maintenance).
- Two-bedroom flat is going for just Rs 12,000 in Whitefield (Six months ago it was about Rs 25,000).
- Villa in Adarsh Palm Meadows in Whitefield at Rs 75,000 (Six months ago it was at Rs 2 lakh ).
Rentals in Hyderabad
- Three bedroom flat in Upmarket Somajiguda area is going for Rs. 14000 a month (Six months ago was Rs 20000-22000)
- Three bedroom flat in IT capital Hitec City is going for Rs. 14000 – 16000 a month (Six months ago was Rs 25000 – 30000)
- Independent house in Jublee hills which used to go for rentals of Rs. 2,00,000 per month are now not finding any takers for even Rs. 1 lac
- Many commercial establishments have already given notices to owners to reduce the rentals to the tune of 40-50%
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Posted in: Real Estate
Comments • comment feed
Yes this is true. In fact recently I came to know about few cases where rentals for retail space has be renegotiated downwards by 40-50%.
People are also moving from large space to smaller space – so while the rental for 3BHK is going down the rental for 2BHK has marginally gone up. There were no takers for 2BHK about 6 months back.
February 23rd, 2009
Yes. It is very much true. There are so many new flats and very few takers. The supply is far ahead of the demand and owners who have their flats vacant are getting desparate. In Sainikpuri area, there are about 40% of newly constructed flats vacant for durations in excess of 6 months. So you can get a very good bargain unlike an year ago.
April 14th, 2009