arun

Rentals in Ludhiana are increasing at a stable rate.

As the construction boom in this financial capital of Punjab is increasing, it has made the real estate business grow manifold, rentals have grown at a stable rate in most parts Ludhiana. Be they in posh localities like Sarabha Nagar or the areas inhabited by middle-income groups, house rentals have recorded an increase of less than 10 per cent during last 18 months.

A survey of the rental market network spread across the main residential localities in the city revealed that while an independent house constructed over 250 square yards in Sarabha Nagar is available for anywhere between Rs 7,000 to Rs 15,000 per month, property owners charge about Rs 5,000 to Rs 8,000 per month for similar accommodation in Bhai Randhir Singh area.

Similar rentals were applicable last year as well, meaning there is no substantiate hike. It can be easily concluded that except for the houses located in vicinity of main market area, rentals on an average have not increased more than Rs 2,000. Similarly, in residential areas like Dugri, Haibowal, Vikas Nagar and Gurdev Nagar where monthly rentals range between Rs 4,200 to Rs 7,800 depending on the type of construction, rentals have not increased more than Rs 1500 per month.

There have not been any substantial increase in the house rents during the past two years due to the easy availability of home loans and the plethora of housing options. The growth rate of rentals in the residential segment is stable because people today do not mind paying EMIs for their dream home rather than opting for rented accommodation. Also, it makes sense to pay a little more for EMIs and possess a house of your own. It is only the professionals coming from outside Ludhiana, who are now looking for rented accommodation. And they pay just the amount they get as house rent from the company. These rentals do not see an annual increase every time.

However, some property consultants are of the opinion that once the shopping malls are operational (over 24 of them under construction), the demand for good rental accommodation is bound to pick up. As the city is developing and multinational companies are foraying into the city, the demand for good houses will go up. Apart from getting accommodation for their staff, companies do require houses or flats on rent which they can convert into company guest houses. These companies do not mind paying the same kind of rent that they pay in the cities like Delhi and Mumbai. Also, an increase in residential rents can be anticipated in the wake of the increasing demand by big players in the retail industry, especially in localities coming up on the Ferozepur Road.