Chandigarh: With property rates touching sky-high limits, a staggering number of Tricity residents are opting for rental accommodation. Rates of property has been on the rise for the past couple of years and as a result, renting houses is fast becoming a way of minting money.
While rates at Panchkula and Mohali are on par, Chandigarh continues to be expensive and sought-after when it comes to rentals. Keeping true to the divide sweeping over the northern and southern sectors of the city, price of houses available on rent in the northern sectors are considerably high than the ones in south.
“Northern sectors continue to be ‘privileged’. These sectors do not experience power cuts. Also, standard of living of people residing in these sectors is high, which makes customers prefer such surroundings while searching for rental accommodations. Southern sectors such as 40 and beyond are very crowded, and are generally avoided,” said Vishal Rawat, property consultant at Bhagwati Associates.
“Because of high rate of migration from places like Punjab and Haryana, seekers of houses available on rent has increased. People are renovating old houses and also adding more floors to the existing ones. The return on property is less than 1 percent, due to which people renting their houses tend to increase rents in order to earn profits,” he added.
Gurdarshan Chhabra, property consultant in Chandigarh said, “Corporate companies send their employees to Chandigarh on time-bound contracts who prefer newly constructed houses. The house rents automatically increase with such increased demands. As compared to last year, rent has not changed much, this year, but if a comparison of the last three years are drawn, there has been a 25 to 30 percent increase in rents”.
“However, the market is at present facing a slight slump because companies are resorting to cost cutting. The interest rates and prices demanded by owners is way too high for people to afford. Flats constructed in and around Zirakpur and Mullapur are attracting middle class customers,” Chhabra added.
“The difference in rates is huge when it comes to Mohali and Chandigarh. Corporates prefer the City Beautiful and not Mohali owing to frequent power cuts and poor construction,” says Simranjot Singh, property consultant, Exclusive Properties, Mohali.
Property dealers feel that due to more roads connecting Mohali and Chandigarh, Mohali has an edge over Panchkula. Kirpal Singh, another property consultant, said, “Customers looking for houses on rent in Panchkula prefer sectors like 7, 8, 9 and 10 because of their proximity to Chandigarh and also because these are considered to be posh areas. Sectors around Ghaggar are preferred only by employees working in and around Pinjore and Baddi. There has been an increase of minimum 20 percent in rental rates from last year in Panchkula”.