Home Rentals on Zoom on Reality High Prices
Rise in the rate of interest on housing loans and increase in the rate of the home rentals are making unaffordable for the people to either have their own houses or to have homes on rentals. Earlier increase in the rate of interest on housing prompted the people from the idea to have their own houses and people started gaining interest in living on rentals. High interest on loans and increase in the prices of the property has forced the people to postpone their plans to buy new houses, and it has benefited above all to the landlords, who have their own houses, as more and more people prefer to live on rentals. But unfortunately recent increase in the prices of the rentals in the past few months has really made it unaffordable for the people to either have their own houses or to live on rentals. Rise in the prices of rentals has really become a grave problem for the working class people especially in the metropolitan cities like Mumbai, Chennai, Delhi etc, as the prices have arisen at an alarming percentage.
Industry Norms are Passé Now
Industrial norms of eight to ten percent rise in the rentals are now a past. Now it has arisen from 12-20% depending upon the position and availability in different metropolitans of the country. As an incident in Kandivili, in the western suburbs of Mumbai puts spotlight over this hike in the rentals, where landlord asked his tenant Deepak Verma for 25% hike in rentals to renew his housing lease. Such type of sudden increase in rentals may create a stir among the tenants. Landlord leaves two conditions before the customers either to accept this hike or to leave the house. Thus making it difficult for the employee class to have their housing
Price Hike in Property Responsible
The leading factor responsible for the increase in the prices of rentals is the increase in the rate of property and real estates. Yashwant Dalal, the President of the real estates concluded that prices of properties are increasing constantly beyond the reach in the last three quarters .And this increase in the prices of the properties have forced the people to leave their dreams to buy their own houses. And most of the people are shifting their plans from buying their houses to live on rents. And landlords fully aware of the fact charge the price which can earn him maximum profit, as he knew that tenants have no other option except accepting the price which he charges.
Metropolitan Cities Becoming the Centre for This Hike
Statistics show that this price hike in rentals is mostly practiced in metropolitan cities. A survey conducted by real estate portal 99acres.com confirmed this price hike in the rentals with increase in reality. According to the survey, metropolitan cities have become the centre for this hike, as statistics gathered by the site clearly proves it. Starting from Mumbai and its surrounding areas, statistics show an increase in the rentals at different areas of the metropolitans. West Mumbai noticed an increase of 12-20%, whereas Western suburbs of Khar experienced 47% increase in the rentals. Same has been noticed in the surrounding areas like Mahalaxmi and Napean Sea Road where rentals increased by 28% and 13% respectively. Similar result has been recorded from the Bandra West and other areas like Beach Candy etc, where the increase is 11% and 6% respectively.
Not only Mumbai, but Delhi and NCR are also facing same price hike in rentals. Following statistics make it more clear, as in Delhi the areas like Saket , South Extension Safdar Jung and Malviya Nagar are experiencing an increase of 31%, 24%,22% and 21% respectively. Vasant Kunj and Dawarika proved to be the most affordable areas with 17% and 12% price hike in rentals.
However, other industrial hubs of the countries are also facing the same situation. As in Noida Sector 93, Sector 53, Sector 61 and Sector 82 experienced an increase between 18-25% in rentals. Meanwhile, Gurgaon , Sohna Road, Sushand Lok noticed 11% hike.
Small Cities Also Under Its Impact
It is also noteworthy that including metropolitan cities, small cities like Nagpur, Jaipur and Chandigarh too have experienced same price hike in rentals. The apartments or the rooms which are available at Rs. 5000 to Rs. 8000 have now gone to Rs.10, 000 to Rs. !2,000 in recent days in these cities also.
Development In The IT Industry
The study also conveyed that development in the IT industry also contributed to the increase in the rentals. As fatty salary packages provided by the IT industries has increased and enabled the affordability and demands of the tenants, which in turn has increased the expectations of the landlords also. Earlier where tenants are demanding one bed room or two bed room rooms, now they are demanding three bed room houses and pent- houses. Thus as the demands have increased, so ought the price to fulfill those demands to increase That’s why rentals have increased near these IT industries to almost 20%-25%.
Making Unaffordable to Live on Rent
Meanwhile, it must be noted that few years back when rate of the properties are reasonable, then people preferred to buy their own houses than to pay the rent. But with the passing of years and more demand for new houses, supply seemed to be inadequate and the result is that it created an imbalance in the demand-supply equilibrium leading to increase in the price of the properties. And this increase in price of properties made the people to rely on rental houses more and more. But with the recent increase in the rentals at an alarming rate has made it unaffordable for the people to live even on rents also.Share