Rental Markets in Indirapuram, Ghaziabad

By: George Gonigal

Apartment capital values in Ghaziabad's Indirapuram in May averaged at Rs 3,000/sq ft and three months later it dipped to Rs 2,600 and then started looking up around December 2007 to Rs 3,000-3,500. In February the values have again started decreasing to Rs 2,500-3,000.

However, the rental market has been active and rentals continue to show upward trend across different categories. Majority of the apartments at Indirapuram are 2BHK and 3BHK. According to Surendra Shah, a Ghaziabad property broker, "The dip in prices in Indirapuram was primarily because of the rise in rate of interest."

Adds Ajay Bansal, another property broker from Ghaziabad- "Indirapuram is one of the most favoured places in Ghaziabad but due to the increase in rate of interest, the potential buyers are unable to buy a flat currently. The supply side has been vigorous but the demand has gone down because of the increase in rate of interest as it has affected the purchasing capacity of people."

Any hustle bustle in the values has been due to the increase in rate of interest. As for the fact that rentals have been consistently increasing can be attributed to the same reason, 'increase in rate of interest.' Since the buyers found it difficult to buy a own home they are taking homes on rent which is moving up the value trend for rental all across Vaishali, Kaushambi, Vasundhara and Indirapuram, though out of all Indirapuram is the most favoured due to its good infrastructure.

The difference between monthly rent and EMI is huge. For example, if earlier a person was paying approx. Rs 15,000 as EMI for housing loan, today he/she may have to pay double the amount as EMI. This not only hampers the purchasing power of the consumer but also append on to the burden of their savings and other long-term installments. Comparatively paying a monthly rental of about Rs 7,000-12,000 (approx) doesn't demand much on a consumers part, who for once can't afford a good house in the same amount in Delhi, but surely can in NCR/Ghaziabad.

One of the brokers, Satish Ahuja stated that, "if, at present the government reduces the rate of interest, there could be no stopping for Ghaziabad residential real estate market."

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