Home rentals rise even in slow realty market

While buyers are in a wait and watch mood, the home rental market is headed north. It has seen a 15-20 per cent rise in values over the past year across many markets, irrespective of the slowdown in the property sector. Experts say rents are up because prices went up irrationally in several major markets.

In spite of low sales, prices of residential units did not come down, thereby pushing rentals up due to high demand.Brokers based here and in the National Capital Region, whom Business Standard spoke to, say there has been no impact of the slowdown elsewhere on the rental market.

"Locations where rentals had gone up earlier did not see much rise but the mid-end rental market is booming. There is a 15-20 per cent increase in rental values," says a broker in north Delhi.

Despite declining sales, property brokers, many also small-time developers, are busy redeveloping houses 25-30 years old, with changes in design and facilities, and more space."