Hindustan Times - Rental property sector in Noida sees an uptick as migrant population returns

Rental property sector in Noida sees an uptick as migrant population returns. By Hindustan Times

Upward curve in residential rental income

Kuldeep Singh, a broker in Sector 77, says that the rent for a three bedroom-hall-kitchen (BHK) apartment in the area reduced, from ₹13,000-16,000 earlier to ₹10,000 to ₹12,000 last year.

“Between April and July, the situation was so bad that some landlords even reduced their prices to ₹8,000 for a three BHK in Sector 77 in order to earn a rental income during the lockdown,” he said.

Industry experts echo the sentiment. Mani Rangarajan, Group chief operating officer (COO) of Elara Technologies that handles housing.com, Proptiger, and makaan.com, agrees, saying, “Many owners have rented out their homes on lower rates in light of Covid-19 to maintain the flow of a second income during these difficult times, especially the ones located in prime hotspots of the city”.

Now however, almost a year since the lockdown was imposed, the situation has become better with many renters returning to the city. “From this year, the prices have increased to about ₹14,000-15,000. Though the demand is not the same, but we are hopeful that by June this year, it will get back to its original strength,” adds Singh.

Another industry expert says that though work from home (WFH) continues in a majority of offices, the gradual opening of several other sectors has helped revive the market.

“With WFH continuing in major IT companies, the downfall in terms of rental housing cannot be ignored. However, there has been a breather for the sector in Noida due to other industries and offices, apart from some IT firms, gradually restarting work-from-office post lockdown,” said Kapil Kapur, director – sales and strategy, Bullmen Realty.

Vikram Negi, who works at an IT firm in Sector 62, recently moved with his family from Dehradun to a rented accommodation in Sector 151’s Jaypee Aman.

“When my firm switched to WFH last year, I left with my family to our hometown. We used to live on rent in a two BHK in Sagar Apartments in Sector 62 for ₹15,000. Now, our office has started calling upper management employees for a meeting every two weeks so we had to come back. However this time, I did not have an obligation to live in Sector 62 and decided to get a two BHK+study in Jaypee Aman for ₹13,000. I don’t mind the drive to work as it is only twice a month,” says Negi.

Besides, industry experts reveal that with remote working becoming a norm, people no longer have the obligation to live near their offices.

“The WFH option is not going away anytime soon, and those who were living in two BHK apartments on rent in prime locations near their offices, like sectors 61-62, sectors 126-135 or sectors 91-93 near the NSEZs (Noida Special Economic Zones), are now exploring the two BHK+study apartments further along the expressway towards Sectors 150, 151 and even Noida Extension. The apartments there are bigger but cost the same at about ₹15,000,” says Santosh Agarwal, chief financial officer (CFO) and executive director of AlphaCorp, which has an upcoming project in Sector 150. He adds that a majority of such tenants are families whose children now need a separate study due to classes being held online.

Paying guest accommodations struggle to survive

Those who ran PG accommodations for students in Noida have been hit the worst. Rahul Saini, who ran a two-storey PG accommodation in Sector 127, has now switched to letting out his property for rent. His property was majorly used by college students studying at various private universities in Noida.

“I used to earn over ₹10,000 from each floor when I ran the PG accommodation. But after lockdown, students left for their hometowns and I had to turn the units into accommodations for renters. Now the rooms are rented for ₹6,000 each which has reduced my income by 40%,” says Saini, who is a resident of Raipur Khadar village in Sector 126.

On the other hand, the situation has started to look up for PG operators who cater to working professionals.

“Since November last year, our PG accommodation has been partially occupied. However, from February this year, it has been taken up fully as most people working in nearby offices, like in Sector 16, have come back to the city,” says Pankaj Bisht, who runs a PG accommodation in Sector 27.