The monthly rental values in some South Delhi localities have slipped by up to 25 per cent as flats remain vacant due to low demand on account of COVID-19 outbreak.
The outbreak of Novel Coronavirus COVID-19 not only impacted the economic activities resulting in exodus of migrant workers, but whoever stuck in cities in idle condition took the first opportunity to go back to their respective hometowns leaving the rented accommodations vacant.
“About 30 per cent rented accommodations are now vacant,” said Deepak Kumar of Deepak Associates, who deals in properties in South Delhi localities of Arjun Nagar, Safadarjung Enclave, Green Park and adjacent areas.
Explaining the reason for the vacancies, Kumar said, “Mainly students went back to their homes as soon as train services started.”
“With colleges and universities shut and no certainty of opening after Summer Vacation due to increasing cases of COVID-19 infection, students prefer to go home vacating their accommodations rather than keep on paying rent,” he added.
Talking on the demand side, Kumar said, “Mostly budding Doctors and Nurses are taking homes on rent as they are increasingly getting appointed in nearby AIIMS and Safdarjung Hospital.”
However, demand is well below the supply, which results in fall in monthly rentals. In Arjun Nagar, a flat was offered for a monthly rent of Rs 12,000, which was earlier put on rent for Rs 16,000. Similarly, a flat in Safdarjung Enclave was offered on rent for Rs 15,000 instead of pre-COVID rental of Rs 20,000.
In both the cases, the monthly rental value slipped by 25 per cent as flats remain vacant due to low demand on account of COVID-19 outbreak.
“The fall in rental is not uniform. It depends on the owner’s source of income. In Arjun Nagar, 90 per cent landlords depend on rental income for their livelihood, so they are ready to accept lower rent, rather than keeping the accommodations vacant,” said Kumar.
With the spike in COVID-19 positive cases and increasing death rate, more people may prefer to go back to their hometowns and work from home at their own places, hitting the rentals even harder.