For most people, owning a house in Delhi is beyond their means. Now even renting a house in the Capital has become an expensive proposition in the past two years.
Not only are the rentals in the preferred localities of south and central Delhi touching the sky, rents for houses in east and west Delhi and NCR areas have spiralled as well.
According to a recent survey by leading real estate portal 99acres.com, rentals for residential properties have seen an average rise of 25% in Delhi NCR with rentals in most areas appreciating by 10% annually.
The areas that have seen the maximum hike are Kalkaji (47%), Paschim Vihar (29%), Mayur Vihar Phase I (26%), Rohini (25%) and Patparganj (25%). The highest appreciation in NCR, however, has been in Gurgaon’s DLF Phase V area which has recorded a 50% hike in past two years.
Thanks to the advent of Metro, areas such as Vaishali (41%), Vasundhara (46%) and Indirapuram (34%) have also seen a spurt in rentals in the past two years.
Noida, which has been a preferred destination for the middle-class for many years, has seen a jump of 30-35% in rentals.
More preferred areas in south Delhi, such as Defence Colony, Green Park, Hauz Khas and Safdarjung Enclave, on the other hand, have not seen much appreciation, thanks to limited availability of houses and their already sky-high rentals.
In fact, according to the survey, areas such as Green Park and Lajpat Nagar have witnessed a slight lowering of rentals in 2012.
“The jump is because demand for dwelling unit outstrips the supply by a huge margin in Delhi,” said Vineet Singh, Business Head, 99acres.com.
“The delayed construction of ongoing projects especially in the NCR may lead to further escalation in the next couple of years,” he said.
Ramesh Menon of Certes Realty says that rentals are going up in the NCR and areas with multi-storey flats such as Rohini and Patparganj as young professionals looking for rented houses prefer apartments to plotted houses with floors in congested areas.
“There is a distinct preference for apartments as these are no-nuisance with power and water backups, 24x7 maintenance and other modern amenities,” he said.
“DLF Phase V has seen so much growth because it's near Gurgaon’s business district and offers many recreational options too.”
Manish Mehta, Vice President, India Homes, however, said that from the investor’s point of view, rentals haven’t gone up as much as they should have.
“The rate of return is just 2-3% of the property price annually,” he said.