Kumari Palany & Co

In Chennai, people pay high rents even now in this COVID and in the lockdown

Posted on: 01/Jun/2021 9:17:35 AM
The residential rentals in Chennai and in the suburbs havent come down even in the lockdown and closure of businesses. It must be remembered that in 2020 the residential rentals came down as many moved from Chennai to their native places. As a result, the house owners offered discounts to attract the tenants. The rentals have risen back once again to pre-Covid times in the apartment complexes in Chennai. The demand for housing has gone up from January 2021 and April 2021.

The commercial rentals have reduced due to lack of business activities but the residential rentals have not decreased in Chennai from September 2020. This was mentioned by some stakeholders.

It was brought to light by an online real estate portal that the movement of people from Chennai to their natives has marginally impacted the occupancy rates in Chennai but on the city outskirts the situation is better. From Mr. Mohan Kartha a real estate agent registered with TNRERA it was clear that many were holding on to their apartments and did not know the environment of prospective new flats and neighbours. He then shed light on how there are few tenants who have been re-negotiating with their owners to continue in the same flat.

The demand for 2 BHK flats in Chennai remains stable now. This was highlighted by Mr. K. Chandrasekar belonging to a Chennai based property management services firm. Information is that this property management firm maintains about 500 rental properties in Chennai including 2100 rental properties on OMR. He explained that not even one property that the firm maintains got vacated on OMR and in other parts of Chennai. The tenants are of the view that the lockdown is just a temporary one. It must not be forgotten that in 2020, OMR was worst affected in the residential rental segment.

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