How Much Do Delhi Landlords Make?
Capital values in Delhi-NCR (national capital region) may be beyond the reach of those planning to own a property here. However, there is plenty for people to rent here. Do you know what are the rentals like in the national capital? Those who invested in a property in Delhi at a favourable time and are now looking at rental returns, indeed have a wonderful story to tell. Take for example, 35-year-old Roopi Parmar and her family. The Parmars have briefly returned to the city. Her husband is a SAP Consultant with a leading IT firm in the United States. When the Parmars left, they put their 3BHK apartment near Vasant Kunj on rent. “We leased our independent floor and the returns were handsome. We got Rs 1.40 lakh per month as rent.”
Just like Vasant Kunj, some of the high yielding localities in the capital include Greater Kailash-I, where you could rent a 4BHK apartment for as much as Rs 15 lakh. Bigger configurations in Chanakyapuri, Defence Colony, Dwarka Sector 13, Golf Link-I, Jor Bagh, Kailash Colony, New Friends Colony, Panchsheel Park, Shanti Niketan, and Sunder Nagar can cost you as much as Rs 3 to 10 lakh per month. Capital values herein can touch even Rs 30 crore. See such properties here.
Given the skyrocketing rents, the security deposit in the city is also high and can go up to Rs 24 lakh. The deposit is refundable subject to deductions for wear and tear or mismanagement.
You would be spared a lot of running around if you opt for these ready-to-serve homes. Most homes are either furnished or semi-furnished with provisions for air conditioning, gas connections, 24/7 water and power supply, servant rooms, refrigerators, wardrobes, television sets, car parking, children's play area and other basic furnishings etc. Most of these are either independent homes, villas or apartments.
Who lives here?
Most landlords would prefer families. Industrialists, corporates, embassies and those who want to lease homes as political party offices also form part of the target audience. Check out lavish homes on rent. Some homes are also leased by corporate office who then let it out to their guests on short term stay or expats who visit the capital for their projects. In short, there is no dearth for takers.
Affordable homes on rent
The aforementioned should not alarm you. If you are looking at renting an affordable apartment in Delhi, you have several options. CR Park, Dwarka, Greater Kailash I, Gulmohar Enclave, Hauz Khas Village, Janakpuri, Kalkaji, Mayur Vihar, Malviya Nagar etc have homes within the range of Rs 40,000 per month. You may want to see them here. However, given the popularity of these areas and proximity to job markets, you may find smaller configurations popular here.
Also read: Connectivity Is The Key Word In Delhi Budget
Here are some interesting facts about Delhi's property market:
- A recent research that surveyed 3,000 consumer-influencers across eight cities found that Delhiites have the lowest propensity to buy properties. This could also be because demand for affordable homes has taken over the steering and such homes have moved farther away from the capital to the National Capital Region.
- The ruling party in the State has said that it would scrap off property taxes if voted to power in all the three municipal corporations.
- Delhi Metro, for the first time has directly negotiated with home buyers. In order to speed up the Phase-III of Metro (Majlis Park to Shiv Vihar), a 714-sq-mt plot had to be acquired. An estimated Rs 5.91 crore has been given to the landlord in return for the rights to demolish the top floors of two buildings.
- Delhi's longest Metro route from Mukundpur to Shiv Vihar will be open to public in its entirety by end of September 2017. It is also called Line 7. Although land acquisition, compensation and other factors have delayed the project, by next year, this Metro route is expected to ease traffic and also, decongest some of the high-footfall Metro stations such as Rajiv Chowk.
- As per the latest reports, Goods and Services Tax will be levied on residential, commercial and industrial leasing from July 2017 onwards.
- Delhi Metro Rail Corporation is going the Delhi Development Authority route and is planning to invite applications for its soon to be launched projects in Janakpuri and Okhla. Read more about it here.