By Accommodation Times Research
Residential Rentals have been falling since last year and now have reached 2001 level. Rents in cities like Pune, Thane, Aurangabad, Rajkot, Ahmadabad, Ranchi, Lucknow, Bhubneshwar, Hyderabad, Kochi, Panjim, Ludhiana, Bhatinda, Mathura, Ajmer and Jaipur have fallen flat. Since there are huge supply and till recently, builders were charged income tax on notional rent on properties which got OC and not stock in trade, were forced to give flats on rent.
With Rentals have saturated and gone beyond common men’s reach. To reduce rental cost, people have started migrating to outskirts and areas where huge supply. The rentals which had gone from Rs5/- per sq ft average to Rs35/- in city centres and near CBD areas of these cities. Now the rents have fallen to again 2001 level.
Pune and Ahmedabad are worst hit. Huge track of land on the out skirts of these cities have been developed and huge supply to the tune of 3 crore sq ft in Pune and almost 5 crore sq ft near Ahmedabad is ready for absorption.
Rentals are likely to fall further.