By AW Research
As per the research data and trend, residential rental market is entering into recession. Residential rentals are going down as there is a huge pile of stock in the out skirts of the urban centres offering very lucrative and affordable rental accommodation. Temporary rental accommodation sought by the home seekers who have booked their flats or looking to enter homes after furniture work have started taking rental accommodation on affordable rent. This have resulted into huge loss of rental yields from accommodation which are near by Business Districts or market places.
Most of the cities have now been provided with metro, which reaches people within no time to their destination on the suburbs and extended suburbs of the metro cities. This has resulted into people preferring lower rentals on the outskirts rather than in the congested business districts.
Last quarter, the rentals have fallen to 10-35% in the major cities in India and likely to follow the trend after monsoon. Usual shifting for employments also have seen major boost for rental accommodation but now majority of the corporate have started buying properties instead of offering HRA and other rental perquisites.
Landlords and owners of the properties are now preferring to give on semi furnished status as people carry their own furniture to taste and cost. Hence semi furnished accommodation for residential purposes are loosing rent. In some part of India, even deposits have also declined to three months’ rent.