Noida: There is good news for house hunters in Noida as residential rents continue to dip. Also, people can expect a further correction by the end of this year. The projection has been made in the latest report released by real estate researchers and experts, Colliers India.
The research has been based on residential trends in Noida in the first six months of 2016. As per the study, rent rates in most areas of Noida have remained stagnant through the year. In some areas like Sector 92 and 93, it has even slid by 6%. The report also showed a 16% fall in rent in Noida’s Sector 44, the maximum in the entire city.
Colliers sites the increasing numbers of completions and possessions in the first two quarters of 2016 as the reason for the low demand in rentals in existing properties.
“In the first half of the year, 6,000 apartments
were given possession in Sector 45, 74, 75 & 76. While many have shifted to them, many have also given them up on rent
. With more rental properties
available in new apartments
, people from existing rental properties
have shifted to these cheaper apartments
with better amenities,” says the report.
“With more apartments
expected to be supplied over the coming months, one may expect a further correction in existing properties
when it comes to rental
rates,” said Surabhi Arora, senior associate director, research, Colliers India.
However, even if the stagnation and fall in rent
may depict slower returns, the demand for rental property
in the city is projected to go up in the time to come, states Colliers.
“Many IT and ITeS companies have signed up for space in Noida over the past six months. This indicates a shift in workforce to the city. This also augurs well for a demand in rental property
. So we can safely deduce that a demand for rented
accommodation will go up in Noida in the months to come,” Arora explained.
Credits Times of India