Finding a perfect rental accommodation could be a bit tricky. There are several factors that should be looked at before zeroing down on a property. But in certain areas in metros, ‘acting fast’ is one of the biggest factors? That is to say that rental properties that are listed by the landlords are taken up by tenants in less than 15 days.
To find out the average number of days in the market, we closely monitored number of days a listing stayed in the said markets.
In this article, CommonFloor explores three such fast-moving markets in Bangalore, Chennai and Hyderabad. Owing to IT/ITeS influence, every year, denizens move into these cities in pursuit of better job opportunities.
Here is a snapshot!
Bangalore: Ulsoor (6 days)
Located in the heart of the city, Ulsoor is one of the well-established markets in the garden city. Strategically located at the centre of the city, it is just 2km from the bustling MG Road and 4 km from Indira Nagar. It also enjoys metro connectivity via Purple Line of Namma Metro.
So, what’s available? Maximum properties up for rent in Ulsoor are independent houses, followed by apartments. At present, the rental values are in the brackets of Rs 22-25 per sq.ft. As per CommonFloor Real Insights, rental values in Ulsoor have recorded an appreciation of nearly 11 per cent in a mere quarter. In Q3 2015, the average rental price stood at Rs 21 per sq.ft., which increased to Rs 23 per sq.ft. in Q4 2015. Not only this, the area is also clocking healthy rental yield of about 2.3 per cent. Thus, for investors eyeing high rental income, it definitely evolves as a potential option (provided one have a deep pocket)
Hyderabad: Madhapur (10 days)
Madhapur has matured not only as a residential but also as a commercial hotspot in the past few years. With a good concentration of IT/ITeS companies, it has made its mark on the city map. Moreover, its proximity to HITEC City, Jubilee Hills, Kukatpally and Kondapur has significantly helped the area climbed the realty growth ladder.
Maximum properties available for rent in Madhapur are apartments, followed by independent houses. At present, the rental values here are in the brackets of Rs 11-19 per sq.ft.
The construction of metro station has played a major role in the rise of property prices here. Additionally, due to its strategic location, the area is clocking rental yield of about 3.8 per cent, which is considerable good.
Chennai: Besant Nagar (15 days)
Located in South Chennai, Besant Nagar is one of the premium addresses in Chennai. Its proximity to Old Mahabalipuram Road and East Coast Road has made it easily accessible to other parts of the city. Besant Avenue Road is another important road that connects it to Grand Southern Trunk Road (GST), which further leads to the International Airport and Railway Station.
Maximum properties available for rent in Besant Nagar are apartments, followed by independent houses. The area has witnessed a rise of 5 per cent in rental values in just last three months, as per CommonFloor Real Insights. At present, the rental values are in the range of Rs 19-35 per sq.ft.
Interestingly, being established and premium localities, not much new supply is entering these locales. However, it is interesting to know that all the markets are actively transacted.
So, despite being more expensive, why are properties selling/renting like hot cakes in these markets? Well, simple economics: High demand less Supply. Due to limited land availability, there not much scope of development in these areas. Hence, rental properties that enter the markets gets snapped up quickly.
Thus, if you are interested in any aforementioned markets, act swiftly is all that we would suggest!