Despite new stock, Pitampura home owners bank on rental returns

While property market has been sluggish for quite some time now, there is no denying the fact that the rental market has not correspondingly dropped. In fact, if you are an investor, you would know the best alternative to cash in from this slowdown. Therefore, a lot of house owners who went in for re-development are giving their properties on rent.

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Qasim Kaif of Mubarak Properties says, “Properties here are now available for Rs 80 lakh and above. Although supply of new properties has increased by a small proportion, most home owners are relying on rentals than proceeds from sale. Rents vary from between Rs 5,500-35,000 per month depending upon the exact location and size of the house, facilities provided - example, water supply, AC’s, geyser and food.”

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Mamta Bhatia is one such home owner in Pitampura. She is a school teacher by profession and used to facilitate catering services for a Kamla Nagar based womens’ PG. After her husband’s demise, she has rented out her 3BHK flat which fetches her Rs 27,000 per month.

“I could have sold the house after re-development because it could fetch me close to a crore at Rs 9,500 per sq ft, the existing rates back then. But I decided to hold the property because rentals were good. I let out the house as per the tenants’ interest. If a person wants to share a room, the per head charges come down. Some others prepare for competitive exams like IAS and they prefer taking up a room. They pay a bigger amount, but the rentals are assured,” says Bhatia.

“North Delhi is known for its numerous colleges. While some prefer staying close to college, many others who may have only 2-3 classes per week choose to opt for residential areas close to these educational institutions. All this has favoured investors here who do not want to sell off their properties as it is a source of constant rental returns,” says Vinod Chaubey of Infy Realties.

Trend watchers like Praveen Arora of Aadi Shakti Associates says, “Businessmen constitute almost 60 per cent of the tenant population followed by service sector and students.”

Most properties here are either builder floors or apartments. A 2BHK unit costs you Rs 55-90 lakh. Larger homes are priced higher at Rs 75 lakh to Rs 1.5 crore. Sizes vary from 1300-1800 sq ft but prices depend on the location.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/despite-new-stock-pitampura-home-owners-bank-on-rental-returns/80436.html