End of WFH likely to spur rental boom in Hyderabad
The Covid-19 pandemic appears to be on the wane, well, at least for now. Life is almost back to normal in most places, and yes, offices are bidding bye to the work from home mode and reviving work-from-office systems. And that, in Hyderabad, home to one of the fastest growing IT sectors in the country, means one more thing. Many people, who went to their home States and towns almost two years ago, are going to return to the city. And that in turn, means that many will be looking for accommodation.
So, this, by all means, could be the right time for house owners in the city to rent out rooms, portions and homes and to earn some money. In fact, the residential demand has spiked in all top cities in the country, according to a recent Anarock report, which says the top cities have seen residential demand, and in turn, rentals go up as against the pre-Covid-19 period in 2019. In Hyderabad, the report says, rentals have gone up by 5 per cent to 10 per cent.
The second quarter of the fiscal, in fact, witnessed Hyderabad with the third-highest new launch residential supply of about 15,800 units, which accounted for a 19 per cent share of the overall new supply in the top seven cities. Residential sales were concentrated mostly in two zones, West and North Hyderabad, accounting for 50 per cent and 42 per cent share respectively, as homebuyers opted to be in proximity to the IT/ITeS hubs of the Financial District. East and South Hyderabad together accounted for about seven per cent of the housing sales. And this also meant that people, who were not into buying homes, were looking for rental properties.
Rental values in key markets like Gachibowli, Kondapur, Miyapur, LB Nagar and Adibatla, most of them in proximity to the IT corridor, saw a jump, ranging from five per cent to eight per cent, the report says.
Now, since the market outlook is quite good, dreaming about that extra income from the rented portion is easy. But there are some points to be kept in mind while renting out your home or a portion of it. The first is to learn a bit about the market for rental properties, especially for those in your area. This will help you decide on the rent that you want to charge. Those with high hopes and asking for high rates could end up waiting endlessly for a tenant, especially if the rent quoted is higher than the market rate. And at the same time, your rent should not be lower than what is charged by other homeowners in your area. Of course, all this also depends on the condition of the room, portion or the house you want to rent out and the facilities you have on offer there.
