Rajshri Mehta

It’s been almost two months since a 38-year-old senior advertising agency executive set out to find a 2BHK apartment between Andheri and Goregaon on rent. Armed with a budget of Rs15,000 a month, he thought finding a house wouldn’t be difficult.

He was in for a rude shock. “House rents are extremely high,” he said, “and some of the places I saw were just rat holes.” His story is not uncommon, say real estate brokers.

Rents in Mumbai’s residential areas have gone through the roof. For instance, if you want a 2BHK apartment in Cuffe Parade in South Mumbai, be ready to shell out a princely Rs1.25 lakh a month.

A few months ago, 2BHK flats in the same area were being leased out for Rs45,000 to Rs80,000 a month.

Rents in Bandra are also up. A 2BHK apartment in the queen of suburbs now comes with a price tag of Rs90,000 a month from Rs25,000-Rs40,000 a month a few months back.

The scene in Andheri is no different. Six months ago, it was possible to lease a two-bedroom apartment in Andheri for Rs 12,000-18,000 a month. The rents have doubled now.

Consider the rates in Vashi, a middle-class locality in Navi Mumbai. Monthly rent for a 2BHK flat is anywhere up to Rs20,000.

Two years ago, the highest a flatowner could have got was Rs12,000. Even partly furnished apartments along the much sought-after Palm Beach Road are going for as much as Rs18,000 a month.

The highest change in rental values has been recorded in the South-central Mumbai locations of Altamount Road, Carmichael Road, Malabar Hill, Nepean Sea Road, Breach Candy, and Pedder Road. The other location which has seen a sizeable rise in rental values is the stretch comprising Bandra (West), Khar (West), Santa Cruz (West) and Juhu.

“With an increase in the number of people in the city, there is a spurt in demand for homes on rent and this has resulted in an acute shortage of apartments,” said Aditi Vijaykar, national head of transaction services (residential) of Cushman and Wakefield, a global real-estate consultancy.

The limited availability of residences in South Mumbai coupled with the huge demand has led to an increase in rentals and emergence of other prime locations in suburban markets such as Bandra as attractive options for clients.

But this is not the case in Navi Mumbai where a huge stock of apartments is available for sale. “People were flush with funds when developers undertook reconstruction of their buildings.

They turned to Navi Mumbai because they could buy huge flats with the money they received from developers. The demand led to a boom in the market,” said Jaideep S, a real estate broker who has been trying to find an affordable apartment for himself for the past two years.

Property dealers say the rising home loan rates and steep property prices are responsible for the increase in rentals. “Rentals are always 5 to 6 per cent of the market value of the property,” said Pranay Vakil, chairman of Knight Frank global realestate consultants.

“Property value has increased tremendously over the past few months. So, it is not surprising that rentals have also increased.”

Source : DNA