There is good news in store for Mumbaiites who plan to rent homes in the near future — there has been a marked reduction in rentals of residential properties across the city.
While the rents for smaller homes have dipped by 10%, those of premium properties have fallen by 35%, experts from the housing sector said.
According to realtors in the city, factors such as a slowdown in the economy, a recession in real estate, cost-cutting by companies, as well as better bargaining by tenants have led to this fall in rents.
In addition, real estate investors, who are saddled with vacant flats because of low demand from buyers, have made these apartments available for tenants.
“The older rates were inflated. What we are seeing now is a correction in prices,” said Prakash Rohera, CEO, Kkarma Realtors. He said many companies too, which would earlier rent out apartments to employees liberally, seemed to have tightened their pursestrings.
For instance, at the Ashoka Towers at Parel, rental for a 2 BHK (bedroom-hall-kitchen) is now Rs1.10 lakh a month, as compared with Rs 1.30 lakh last year. At Lodha Bellismo, Mahalaxmi, a 3 BHK apartment facing the racecourse is being rented out at Rs 2.25 lakh, a Rs 25,000 drop from last year.
Similarly, at Green Acres, Lokhandwala, where the 3 BHK cost Rs 1.25lakh last year, the rent is now Rs 1.10 lakh a month. Tenants at Mira Towers, Oshiwara, are required to now pay Rs 55,000 a month for a 3BHK, as opposed to Rs 65,000 last year. In case of Oberoi Springs on Andheri Link Road too, a 2.5 BHK that used to attract a rent of Rs 75,000 a month, now costs Rs 75,000.
“A large number of flats belonging to investors are available in the market, because of which the customer has many options,” said Ketan Alvani, a leading realty broker. “Even while leases are being renewed, there is either a considerable amount of bargaining or no annual increase this year.”