Delhi, the capital city of India with a booming real estate market has also evolved as a city offering the best rental deals in the Indian real estate business. As real estate prices in Delhi strike gold, there has been a trend seen among people to opt for rental space in Delhi.
Besides, due to the huge influx of companies into the capital, there is a growing demand for office space and with pouring retail opportunities; the demand for retail space in Delhi is at an all time high.Some of the credit for the high rental trends at its shopping streets can be attributed to the sharp surge in consumer spending levels and a booming real estate market.
Reports point out that because of the huge demand for rental space, the increase in rents in Delhi is one of the highest in the world over the last year. Delhi also has been conferred the reputation of harboring the costliest piece of real estate (Khan Market) in the sub-continent by a recent real estate study.
The huge demand for real estate in Delhi, in conjunction to being the lucrative market and a perfect setup for corporate business have been responsible to a great extend for increase in rental values in Delhi.
The present Scenario
In the last few years, the lease rentals of office space in Delhi have gone up by almost 100 per cent.
The unquenchable demand for rental space in Delhi has caused rents to tend vertical, as companies flock around the city to initiate and expand their operational bases, there has also been an ever increasing demand for residential rentals in Delhi as employees of those companies seek residential spaces.
Besides, rental values for office space in Delhi is higher since the MNCs mostly seek to lease an office space as they initiate business before making investments so as to test the waters.
Moreover, Delhi is sought to be the best bet for business due to its superb national and international connectivity and also the status of being a capital city; which is no less a determining factor.
Another major influence in Delhi rental trends, triggering rise in rental values across markets is due to the commencement of the metro rail network in certain locations and the plans to connect other destination within Delhi.
While restricted supply in lieu to demand is said to be the reason for 10 per cent rise in high rental values in Central Business District (CBD). Study in future rental trends predict, that the realty sector in Delhi with low vacancy levels and no scope for expansion will incur a rise in rental rates and are expected to continue to rise over the medium term.