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Updated: April 15, 2014 13:38 IST

Rentals shoot through the roof, thanks to bifurcation

M. Srinivas
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Days after the A.P. State Reorganisation Bill was passed in Parliament, house owners hiked rentals by 20 per cent, anticipating a flurry of activity in the city. A double bedroom flat, which used to be rented out for Rs. 6,500 at Patamata, now costs anywhere between Rs. 7,000 and Rs. 8,000, he says.

Bifurcation has cast a shadow over denizens’ search for house on rent, as rates are on an upward spiral.

Days after the Andhra Pradesh State Reorganisation Bill was passed in Parliament, house owners apparently hiked rentals by 20 per cent, anticipating a flurry of activity in the city, leaving tenants high and dry. Some were forced to vacate houses owing to unexpected hike in rentals.

“It is not reasonable on the part of house owners to burden middle-class tenants who are already facing problems due to inadequate salaries,” says Shakeel. He adds that a hike in rent is an additional burden, while salaries have remained the same. The financial woes of middle-class families will further compound from June, as they have to find money to pay school and college fees.

“The steep hike brought into effect almost overnight has come as a severe blow,” he laments. According to rental agencies, the huge influx of students into the city from various parts of the State has also contributed to the rise in rentals. “Several educational institutions have sprung up here, and students who flock to the city stay in rented houses. This has led to a rise in demand for rented accommodation, and house owners are making the best of the opportunity,” says City Rental Agency proprietor Duvuri Durga Prasad.

A double bedroom flat, which used to be rented out for Rs. 6,500 at Patamata, now costs anywhere between Rs. 7,000 and Rs. 8,000, he says. Same is the case with residential areas in Autonagar. The rents at Benz Circle, Gayathrinagar, Bandar Road and Mogalrajpuram range between Rs. 8,000 and Rs. 12,000 for a double bedroom flat with lift and parking facility. What the tenants of Satyanarayanapuram may be getting for Rs. 10,000 becomes dearer for those at Governorpet who shell out between Rs. 13,000 and Rs. 14,000 for similar accommodation.

Pavan Rental Agency owner Enapakurthi Venkata Durga Rao says he has been receiving at least half a dozen enquiries everyday for a double bedroom house. “We fix a deal after negotiating with house owners. Tenants have to pay 50 per cent of the first month rental amount as commission,” he says in a matter-of-fact way.

For graphic

COSTLY STAY

Approximate rental prices for double bedroom houses

*Price is quoted by rental agencies

More In: Vijayawada

Good sign of development. Why not when it can be in Hyderabad?

from:  kanaka
Posted on: Apr 15, 2014 at 09:45 IST
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