Rent inflation was at 3-13% in 2019: Report1 min read . Updated: 18 Feb 2020, 03:01 PM IST
- Delhi-NCR was the only region where rentals fell year-on-year
- Very few people now consider buying property for investment
In India, property prices have either remained constant or witnessed a fall but rentals have been increasing year-on-year.
According to a report, India Real Estate Report, 2019 by Nobrokers.com, a broker free real estate portal, “rent inflation was at an all-time high during the year 2018, with 10% and above across key cities, highest being Mumbai with 18%, whereas rent inflation in 2019 was between 3% and 13%."
The survey was conducted across cities including Delhi NCR, Mumbai, Bangalore, Hyderabad, Chennai and Pune
The report indicated that Delhi-NCR went against the trend, by being the only region among the surveyed cities where rent fell year-on-year.
On the other hand, Pune witnessed the maximum spike of 13% followed by Bangalore (9%) and Mumbai (8%). Chennai and Gurgaon have had the least rent increase of 1-2% during 2019. Most tenants prefer location that are close to work place and have a happening night life.
Once a favorite investment avenue of affluent families and individuals, very few people now consider buying property for investment, despite the fact that rentals have been rising.
According to the report, as many as 87% of respondents wanted to buy a house for end use compared to 13% considering it for investment.
Negligible or negative change in capital values over the last few years is what has kept investors out of real estate investments. According to report, prices of properties in Pune, Chennai and Delhi-NCR depreciated by 1.69%, 3% and 4.69% respectively during 2019, while property prices in Mumbai and Bangalore appreciated slightly by 0.04% and 1.57% respectively.