Should You Be Renting A Flat in Gurgaon?

Gurgaon is witnessing a steady softening of rental values and this may be the best time to check out a 1 BHK fully furnished flat for rent in Gurgaon that you’ve been eyeing all this while but held back owing to perceptions relating to higher rental charges. This is the best possible time to take up a premium Gurgaon flat on rent as rental values have gone down to the tune of 10-29% on an average in recent times according to market experts and observers. Additionally, investors looking at earning good rental yields will definitely be deprived of the handsome amounts they were earning earlier. Returns have declined quite a bit over a sustained period of time owing to lower capital appreciation. Rental income has gone down to approximately 2% on an average for properties in Gurgaon. Rents for flats worth INR 12-14 crore have gone down to INR 2 lakh every month.

There has been a widespread disparity between overall supply and demand in the Gurgaon real estate market. The city is now a commercial hub for several corporates, multinational organisations and national companies. This has led realty developers to invest in developing more and more luxury apartments. Owing to high land costs, mid range and affordable homes were deemed as unreasonable for developers. Most developers in Gurgaon steadily shifted to solely focusing on the premium housing market and this led to an oversupply of flats with values of INR 15, 000 per sq ft and several of these luxury apartments are still being constructed. However, the economic slowdown has led to rentals going down and the market is yet to jump up though there are signs of a revival.

From a 1 BHK fully furnished flat for rent in Gurgaon to a duplex or even condominium, rentals are mostly driven by companies for their senior executives and management staff. However, companies have cut back on several perks given to senior employees in recent times and have started leasing out mid range or affordable homes. Investors were also active in terms of purchasing luxury flats but keeping apartments unoccupied for want of proper tenants was a disastrous options for these investors who started letting their properties out at lower rental values. Rents have dropped to manageable amounts for several luxury properties in Gurgaon and this may be the best time to set up a tony abode for yourself here.

According to developers, the market for luxury properties is still quite strong thanks to NRIs who look to invest in lucrative properties in India and high net worth Indians who have seen steady escalations in their wealth. No matter the drop in rental values at present, capital appreciation for investors has been huge over the last few years. Those who bought luxury apartments have seen values skyrocket to unimaginable levels even though rentals are now at an all time low. Several farmhouses are predicted to be built in Gurgaon as per the government’s policy and this could lead to a total slowdown in the apartment rental market.