Does anyone have any idea why the rents in Delhi are skyrocketing? I have been house hunting and find that even DDA flats, badly maintained with dirty mosaic floors, iron window panes that do not shut, old fixtures and peeling plaster, are beng quoted at Rs 33,000 (for three bedrooms) and over in areas like Alaknanda, Munirka and other South Delhi localities. In fact, a DDA flat in Panchsheel Enclave was quoted for Rs 45,000 and one at Kaveri Apartments was being quoted for Rs 37,000. Just why have the rents gone up so dramatically. Three years ago when I was house hunting these places ranged from Rs 22,000 to Rs 25,000. And in localities like Greater Kailash you could easily get a flat between Rs 25,000 to Rs 35,000 (for a house spread over 300 sq yards). The Rs 35,000 flat is today being placed at Rs 55,000.

Now, on what basis are prices being decided? Who decides them? Tell me if I am right – I think the brokers in Delhi are the ones who set the prices. They quote a higher rate for they gain directly in the form of commission they get. The higher the price of the house, the higher their commission. So they egg on the owner giving him a higher price that what his house is worth and meanwhile tell the tenant looking for a house that he should up his budget. This is the game that they play.

Earlier the brokers would take 15 days rent as fee from the tenant and 15 days from the landlord. But now they are charging a month’s rent each from both. So in a Rs 35,000 a month apartment, a broker makes Rs 70,000 as deal, whereas earlier he would be making Rs 35,000 only.
Any ideas on how this practice can be curbed? Would like to know your thoughts on this matter.
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