The premium residential market in key cities has witnessed remarkable momentum, leading to a significant appreciation in property values and rentals during the first half of the year.
The monthly rentals for luxury housing rose between 5-28 percent year-on-year (YoY) in Delhi, Noida and Gurugram during the first half of 2023, according to a report by Savills, a real estate consulting firm. It attributed the rise in rentals to a demand-supply gap and appreciation in capital values.
The report said that rental values have stabilised in Delhi, which saw a 5 percent YoY increase in the January-June period compared to the 50 percent spike reported in H1 2022.
At 10 percent, Delhi’s Central 1 micro-market, which includes areas like Golf Links and Jor Bagh, witnessed the highest growth in rentals, followed by the South East micro-market, which grew 8 percent. South East Delhi includes areas like Friends Colony East, Friends Colony West, Maharani Bagh, Greater Kailash I, Greater Kailash II, etc.
Gurugram witnessed a 28 percent average increase in rentals across all markets. While rentals in areas like Golf Course Extension Road and Southern Peripheral Road shot up 33 percent — the highest, properties along Golf Course Road saw a 31 percent hike, the report said.
In Noida, the rentals of premium residential properties in areas like sector 50, 78, and 107 rose by about 19 percent. This was followed by the Noida-Greater Noida Expressway micro-market, which saw an 18 percent YoY increase in rentals in H1 2023.
Per the report, the average rentals quoted are for 3 BHK and 4 BHK apartments on Golf Course Road and 3 BHK apartments in other micro markets, including Noida.
According to the report, Golf Course Road commands an average rental of Rs 1.95 lakh per month, while the average monthly rent at Golf Course Extension Road and Southern Peripheral Road is Rs 1.01 lakh. The average rent in areas around Dwarka Expressway is about Rs 40,000 per month, while in New Gurugram it is around Rs 47,000.
As per the Savills India data, the average monthly rental in sectors located along the Noida-Greater Noida Expressway is around Rs 60,000, while it is between Rs 55,000 and Rs 60,000 per month in sectors such as 50, 78, 79, 107, etc.
Similarly, Central Delhi areas like Golf Links, Jor Bagh, Malcha Marg command an average rental of Rs 2.75 lakh per month, while the average monthly rent in areas like Vasant Vihar, Shanti Niketan, etc., is Rs 2.5 lakh.
Shveta Jain, Savills India MD-Residential Services, said that the premium residential market in key cities has witnessed remarkable momentum, leading to a significant appreciation in property values and rentals.
“The successful launches by grade-A developers in NCR and Bengaluru stand as a testament to the enduring interest of buyers in the premium residential segment,” she said.
Source : Money Control