Rents for homes in Delhi-National Capital Region (NCR) have jumped 25-40 per cent over the past year amid a lack of supply and increased demand from companies asking employees to return to work, a report by Economic Times said.
Rental prices for micro-markets in Noida and Gurugram have soared, with landlords trying to make up for losses by taking advantage of the supply-demand gap, the report said.
Meanwhile, in the high-end segment, rents for farmhouses and serviced apartments have also risen due to the influx of returning expats.
Citing an example of Gurugram’s Central Park Resort on Sohna Road, the report said that monthly rent for a 2BHK apartment in this area rose from Rs 45,000- Rs 50,000 to Rs 75,000 in 2019.
Central Park CMD Amarjit Bakshi told ET that the resumption of full office hours and new hiring trends are increasing demand not only for new housing but also for rental housing in all cities.
Sohna Road is one of the top three markets in the NCR region to see rental value growth pick up, said property consultants.
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Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Ltd, said that as people return to the workplace and their workloads increase, they want to prioritise their quality of life and live more comfortably.
This simply means that they would want to move to a new home, or possibly even a new area, whether it is renting or owning a home, he said.
Gurugram, over the past two decades, has developed into a real estate hub with several major commercial and residential properties, attracting millennials and Ultra High Net-Worth Individuals (UHNIs).
Increase in demand post-pandemic
During the Covid-19 pandemic, rents in urban areas saw a decline due to a shift in demand as many people relocated to their hometowns.
The surge in demand came from people who previously moved out of cities due to the pandemic as well as new residents,said Pradeep Aggarwal, Founder and Chairperson, Signature Global, adding that as demand continues to outpace supply, rents are likely to continue to rise in areas with housing shortages,
According to real estate consultants, most of the large office parks in the NCR have occupancy rates above 80 per cent.
Demand has increased in Noida and Delhi as well, with homeowners demanding 30-40 per cent higher rents than before the pandemic.
Considering an annual rental increase of 10 per cent, a 30-40 per cent hike is on par with the market rates. However, a sudden increase after three years is affecting the tenant, said a consultant at Noida-based Investors Clinic.