Luxury rentals in Gurgaon’s Golf Course Road and prime areas of south Delhi have increased significantly as senior executives and expatriates resumed work, said market experts.
Rentals in Gurgaon’s Golf Course Road have increased 14% year-on-year, while in DLF5 Golf Links residences such as The Magnolias, The Aralias, The Camellias and The Crest have seen doubling of rentals since 2020.
Savills India said significant increases in luxury housing rentals have been observed in several other micro markets, including central Noida, select areas of south and central Mumbai and south and east Bengaluru.
“The surge in demand for luxury properties has also had a direct impact on property rentals. As property prices rise, rental rates tend to follow suit,” said Ashwin Chadha, CEO, India Sotheby’s International Realty. “This means that the rental market for luxury properties has experienced an upward trend, with landlords commanding higher rentals due to the increased demand and limited availability of such upscale accommodations.”
DLF5 Golf Links residences located on Golf Course Road command some of the highest rentals in the luxury and super-luxury segments across the country.
The demand for rentals in this area has witnessed a surge from regional expatriate residents, businessmen, CXOs based in Delhi-National Capital Region (NCR) and prospective homebuyers who seek to transition and upgrade from bungalows to high-rise condominiums.
“Within Gurgaon, Golf Course Road has always been the top choice of HNIs (high-net-worth individuals), UHNIs (ultra HNIs), and CXOs when it comes to renting luxury or super luxury homes. Luxury condominiums have witnessed significant rental appreciation in the past few years,” said Shashank Vashishtha, executive director, eXp Realty India.
The surge in demand for luxury and high-end properties is not confined to the primary market, as even the secondary market is experiencing a shortage of such properties, especially in highly sought-after locations in major cities such as Delhi, Mumbai and Bengaluru.
“Housing in India is no longer about the basic essentials. It is more about optimal living. This change of approach is prominent not only in purchase decisions but also in renting. Renting provides you the option to enjoy luxurious amenities that may be beyond your budget if you were to purchase them,” said Vikas Wadhawan, group chief financial officer, Housing.
According to data from Housing.com, rents in the central localities of the top eight real estate markets, which provide ultra-luxurious residences, have surged over the past two years. This increase in rents is concurrent with rising occupancy levels, as more individuals join the workforce in India’s major markets, including Mumbai, Bengaluru, Delhi and Hyderabad.
“The capital appreciation in Delhi-NCR was observed at 40% on a year-on-year basis at the end of 2022 when compared to 2021. The rentals are following the same trend and increasing in the same proportion owing to limited movement in inventory but a decade-high demand,” said Samir Jasuja, managing director, PropEquity.
According to Savills data, the average rental for a luxury three-bedroom house in south Delhi increased to Rs 2.5 lakh a month in 2022, from 2.25 lakh in 2021 and Rs 1.75 lakh in 2020.
Similarly, in south Mumbai, the average rental increased to Rs 5,80,000 lakh a month in the second half of 2022, from Rs 5,30,714 a year earlier.
Unfurnished apartments at The Aralias, DLF Golf Links, start at Rs 4.5 lakh per month, while furnished apartments command rentals of Rs 6 lakh per month onwards. Two years ago, the rentals were around Rs 2.6 lakh a month.
At The Magnolias, DLF Golf Links, the monthly rental for unfurnished units begins at Rs 5.5 lakhs, and for furnished units, at Rs 6.5 lakh per month.
The Camellias, the newest super luxury addition to DLF’s portfolio, commands the highest rentals, starting at Rs 7.5 lakh per month for an unfurnished unit, and at Rs 10.5 lakh per month for a furnished unit.
Source : ET