By Accommodation Times Bureau
Mumbai: A study by 99acres.com revealed that all areas of Mumbai and Navi Mumbai witnessed an appreciation in rental values when we compare rentals of a 3BHK residential apartment in Q1-12( Jan- Feb- Mar 2011) over Q1-11(Jan-Feb-Mar 2010). Mumbai as such has always been in the forefront when it comes to rental values of properties. It has in the recent years witnessed a record rise in rental values which is at par with some of the highest real estate rental rates in the world.
Commenting on the same Vineet Singh, Business Head, 99acres.com said “The residential rentals values in Mumbai are likely to show a further upward trend in the medium term. This is largely due to Mumbai being a highly supply constrained market where the demand for dwelling unit outstrips the supply by a huge margin. The policy environment is currently not conducive for a immediate increase in the supply and thus the demand pressure is likely to continue. Further, due to a high cost of units, the rental returns not very attractive”.
A look at the rental values of key localities of Navi Mumbai clearly indicates that this area is becoming a hot spot for people staying on rent because of the affordability factor. Localities like Kharghar, Vashi, Mahape and Belapur witnessed 42%, 12%, 17% and 8% upward movement in rentals in Q1-12 when compared to Q1-11.
All localities in the Andheri-Dahisar and Thane area witnessed increase in rental values. Thane (W) and Andheri(E) saw highest appreciation with rentals oving up by 21% and 15% respectively in Q1-12 over Q1-11. Kandivali( East) and Andheri(W) saw rental values move up by 8% respectively over the same time period. Nariman Point maintained steady rentals over a period of one year.
Among all areas in Mumbai, localities around Central Mumbai have seen maximum rental appreciation. Bhandup(W), Chembur(E) and Mulund(W) saw 29%, 22% and 20% rise in rentals in Q1-12 when compared to Q1-11. Both the localities of Sion (E) and Mulund(E) witnessed 8% increase in rentals respectively during the same time period.
Apart from Lower Parel which saw 12% increase in rentals in Q1-12 when compared to Q1-11, all the localities of South West Mumbai saw rentals increase within the range of 3% and 8% during the same time period.