Even as some residential localities in Chennai are witnessing a steep rise in rentals, a number of localities are experiencing a stabilisation of rental values. In this period of rising prices of many essential commodities, the lack of uniformity in the growing rentals is affecting the lives of both tenants and landlords.
“The rent of a two-bedroom apartment of 1,100-sqft in Mogappair has increased from Rs.8,000 to Rs.10,000 in the past one year,” said G.Kannan, a resident of Mogappair. But houses mostly in the rental range of Rs.7,000 to 11,000 in areas of Nungambakkam, T.Nagar and Egmore have around 40 per cent rise in rentals when compared to that of 2008, according to residents.
R. Subramani, a bank official on rental accommodation in Kodambakkam, said, “The rentals in residential localities of the interior parts of the city with connectivity have increased considerably because of lesser number of houses available on rent. This is more than what public sector banks are willing to give employees towards their rental accommodation.”
However, contrast in residential rentals is made out if a tenant seeks a house on rent in localities such as Velachery and Thiruvanmiyur. “Lot of houses are vacant. The rental value for a two-bedroom apartment in Thiruvanmiyur near RTO office has reduced from Rs.11,000 to Rs.8,000,” said S. Shanmugaraj, a landlord in the area. “Some landlords who depended on rentals are finding it difficult to remit their home loan amount,” he added.
S. Krishnamoorthy, a resident of Velachery, agrees. Many landlords are forced to increase the amenities to get a good tenant, he says.
President of Chennai Real Estate Agents’ Association Abdul Ravoof said the rate of increase in posh areas of localities such as Adyar, Anna Nagar, Abhiramapuram, Alwarpet and R. A. Puram was only less than 8 per cent in the last 12 months.
Rental values of high-end apartments of more than 2,000 sq ft had been decreasing in the past one year, but the condition is improving now with more takers in the past two months, he said.
“As many middle-class residents are seeking one- and two-bedroom apartments and the supply is limited, the demand is increasing significantly in residential areas around many localities,” said Mr.Ravoof. This has led to relatively higher rise in rentals when compared to that of last year for one and two bed room apartments in some of the good residential localities, said G.Vishwanathan, a consultant.
Posh areas such as St.Mary’s Road and Poes Garden have average rentals of Rs.15,000 to 22,000 for a two-bedroom apartment.
On the other hand, rentals in areas such as Nandanam have reduced as many houses vacated by IT professionals in the area are yet to get tenants.
The rentals of a well-furnished two-bedroom apartment in the locality has reduced to around Rs.8,000 as there is a large supply of houses in the area, according to brokers.
