New Delhi: Rentals of residential properties in central Delhi has appreciated up to 13% in the first quarter of 2008 as demand continues to be buoyant despite the capital witnessing saturation in development of new space, a report says.
Global real estate consultant Cushman & Wakefield said central Delhi locations have witnessed appreciation in rentals in the range of 7-13% in the first quarter as demand in these locations was driven by expatriates who have the ability to pay higher rentals.
“Majority of the south Delhi locations registered an increase in the range of 7-11% primarily due to limited scope of development and buoyant demand,” the report said.
Leasing activities were active across all micro-markets as the end-users had deferred their purchase decisions due to expected corrections in the prices in near future, it added.
As per the estimates of C&W, the rental values in Noida and Gurgaon rose by 10% and 12% respectively.
The capital values of the south Delhi locations had also risen in the range of 10-34% over the quarter mainly due to limited supply and relatively high demand.
“The suburban locations of Gurgaon and Noida witnessed marginal appreciation of 2% over the quarter. End- users as well as investors have adopted a wait and watch policy in anticipation of correction in apartment prices and home loan interest rates,” the consultant firm viewed.