House rent in Noida drops up to 7% as apartments mushroom
NOIDA: The rental rates of apartments in various sectors of Noida have gone down by 3% to 7% in the past one year and they may not be going up back any time soon, says a study. According to a report released by Colliers International, India, titled Residential Property Research and Forecast Report, Noida could be experiencing a temporary phase of low cost living.
“The completions and registrations of apartments have picked up speed in Noida over the past six months. This has made a huge number of apartments available for rent. The new apartments are being put on rent at cheap rates, and people from older residencies are shifting to new apartments to live at cheaper rates. Now, to retain tenants, the rents of older apartments in areas like sectors 28 and 29 have remained stagnant, with no change,” Surabhi Arora, senior associate director, research, Colliers, explained.
As per the report, the present rental rates in Noida at sectors 44, 94 and 93 are marked at highest at Rs 25 per square feet, which make them the most expensive to rent in the city. Sectors 28, 29 and 50 are marked at below Rs 20 per square feet skyline, this is the second premiere circle of rental area of the city. Sectors 61, 62 and 63 are presently lowest at about Rs 15 to Rs 6 per square feet.
“Why would anyone live in a Rs 25,000 apartment if they can move to a newly constructed apartment with power back-up and other facilities at Rs 10,000 per month? Lots of people do not mind driving a few kilometres extra,” Arora explained.
While rents are a major indicator of a Price of Living index in a city, Colliers suggests that Noida could be experiencing a temporary phase of low cost of living. “Every time there is a huge supply of real estate in a market, residential rents go on a slide. But it is a temporary phase and will stabilise over a period of time,” Arora added.