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Why Are Rents Falling In India’s Top Property Markets? written by Sunita Mishra, published in Proptiger.com. January 10, 2020

A slowdown in demand notwithstanding, values of new properties in majority of India&rsquos prime residential markets are rising, even if the appreciation is only mild. PropTiger.com data shows property prices in eight of nine Indian markets increased between 2 and 15 per cent in 2019 when compared to 2018. However, in the same period, monthly rents declined in many of these markets because of increased market supply. Data show monthly rents in major markets have declined in the range of 1 to 26 per cent during 2019.

 

Amid increased supplies, builders and sellers are finding it hard to find buyers willing to purchase,  despite a record low interest regime. Resultantly, most of them are forced to let their properties go over narrow losses. Interestingly, renters are less likely to settle for accommodations they don&rsquot deem fit, budget-wise or otherwise, all thanks to increased supply. 

 

The emergence of rental markets in city suburbs could be responsible for making renting cheaper for what is often referred to as generation rent. &ldquoIf renters earlier refrained from moving to city suburbs because of limited connectivity, the expansion of the Metro network is changing that trend now. With the opening of the Aqua Line in Noida, for instance, tenants living in small apartments in the national capital at comparatively high rents, now have the option to rent a 3BHK in the suburbs for a rent similar or lesser,&rdquo says Sanjor Kumar, a Noida-based property broker.

 

&ldquoPeople anyways don&rsquot want to spend a large part of their monthly salary in rent, considering the money outgo isn&rsquot actually helping them earn an asset as is the case with EMI. Suburbs with lower rents and improved connectivity are the natural answer for generation rent to move to in order to enjoy a better quality of life,&rdquo Kumar adds. 

 

Can landlords expect rents to increase in 2020?

 

Since builders are busy completing their stuck projects, the supply of homes in the majority of markets, especially in city suburbs, is set to rise further. In fact, PropTiger.com data show that nearly a million housing units will be delivered between 2019 and 2020.

 

In case home sales continue to decline in the year to come, builders would be forced to open their unsold stock for renting purposes (many of them are already doing that, since they have to pay taxes on unsold inventory). This factor would continue to impact rents, keeping their growth in check in 2020 too.

 

10 Things To Check Before Shifting To A Rented House

Shweta Talwar

 

When you finally discover a home that you want to rent after many trips to the neighbourhood, you would certainly be in a hurry to move in. However, before moving in, you must consider certain things to make your stay in the house pleasant.

 

Research well about the locality: When you begin the search process, choose a locality which is near your work place or college. This will not only save your commute time but also the travelling cost. However, proximity of the locality should not be the only consideration. Look for the social infrastructures like markets, bank branches, hospitals, etc, as these are must for you day-to-day living operations. You would want to leave your home and belongings safe and secure. Check if the locality has CCTV surveillance systems and watchmen or guards to protect your home when you are out.

 

Read your rent agreement thoroughly: When finalising the rent agreement, carefully read the clauses that specify the period for which you are entitled to stay and the period after which your landlord may ask for an increase in the rent. If you find any of the clauses disagreeable, talk and get it changed immediately.

 

Know your rights: A rent agreement gives you limited rights over the rented property and knowing about them would keep things clear between you and your landlord. For instance, your landlord cannot interfere with your personal lifestyle, cannot prevent any visitors from coming, and cannot dictate a time for you to reach home. He can also not ask you to vacate the property as long as the agreement is in force.

 

Consider the overall cost: A monthly amount is not the only money you have to pay while shifting to a rented accommodation. You will have to incur other expenses such as security deposit, advance rent, broker's fee, etc., before you make a move. Consider these costs as well and set your budget accordingly.

 

Check the goods: If you are moving into a fully furnished apartment, do have a close look at the furniture or appliances that are being provided. Ensure they are in a working conditions and not damaged.

 

Do the basic check: You would not like a choking bathroom sink or broken electrical fixtures in your new home, would you? Run each tap and switch on buttons to see if the water flow is fine and the lights are working all right. Also check that the house is freshly painted and there is no seepage inside the house.

 

Read meters: Always check the reading of the electric meter before you step into a rented accommodation. In fact, it is better to note the meter reading so that you can check the accuracy of the bills. Also, do not hesitate to ask your landlord about any dues.

 

Ask thy neighbour: Your neighbours could be the best people to give you the right opinion about the house, locality and your landlord. 

 

Check the windows and the doors: Another way to ensure safety at your home is by checking the doors, locks and windows of the property. Before finalising a place, make sure you check these for any fault or repair.

 

Get a clean home: Have a word with your landlord prior to the day you are shifting. Ask him to get the house cleaned before you shift.