Is it True That Rental Rates Have been Risen up After Demonetization?

Have you ever think that what an average house in India is rented? If not then start searching because due to #demonetization the average price of a house in the main cities across #India has increased by 3.6% compared to last year while rental values have grown at a faster rate of 4.9% during the same period. And also there is a backdrop of Rs 500 and Rs 1000 notes so we can expect that rental rates can be increase over the next 12 to 18 month as per the financial management consultants ArthaYantra Corporation.

“At ArthaYantra, we expect to see a correction in real estate prices over the next 6 to 12 months. Customers who are planning to purchase a property can hold their decision up to this time period. But there is a pressure on customers regarding the rental value which has risen due to demonetization. The earlier report by the experts covered only eight markets/areas. This report covered the cities which includes #Ahmedabad, #Chennai, #Delhi, #Bengaluru, #Hyderabad, #Kolkata, #Mumbai and #Pune. As per the latest report four new cities have been added. This report includes Indore, Kochi, #Lucknow and Jaipur. The four new cities were found to be more affordable for buying or renting a nice house. Likewise, Mumbai and Hyderabad were found to just affordable. At the same pace Mumbai continues to be the most expensive city In India for buying or renting a house after city Delhi "Capital of India".  

Delhi-NCR is the second most expensive city to  rent or a buy property, as per the report. This city has seen a fall in prices by about 22% over the last four years, though the average rental value have been increased by 10.8 % during the same tenure. After this Mumbai is the most expensive city for both buying and renting residential property. Though prices have dropped by 0.42% which is compared to last year, it is still beyond the reach of a middle income households. Therefore, it is the most suitable city for renting a house. 

Bengaluru leads in renting options, which has pushed rental values down by 2.11% as compared to the last year. Capital rates are up by 4.35%. Mean while Kolkata’s property prices have increased by 10.8% over the last five years. Though the rates in the city grew up by 2.34% and rental rates fell by 5.53%.

Through this report we can simply analyze that rental values of some cities have fallen down and in some cities it has been risen up.