26/06/2017
PUNE: With IT
sector witnessing subdued sentiment amidst pressure on hiring and annual pay
rise for employees, the country's software and services hubs such as Pune, Bengaluru,
Hyderabad, Chennai and Noida-Gurgaon are expected to see 10-20 per cent
reduction in housing rents over the next three quarters, an Assocham paper
said here on Monday.
Unlike in the past when the fresh inflows of young
professionals were pushing the demand for rentals in Bengaluru, the house
owners in India's 'Silicon Valley' seem to have done a reality check and are
accordingly slashing the rentals, while offering better amenities, the study
said.
"Even in the existing rental deeds, the tenants are
seeking better options and no hike in the monthly outgo, quoting the adverse
industry outlook. With better options, the market is tilting in favour of the
tenants, especially those paying above Rs 50,000 per month," it added.
Going forward, the rentals may ease at least by 10-15 per cent
in Bengaluru, Chennai, and Hyderabad, while the decline may be steeper, up to
20 per cent in Pune, in the next three quarters. Gurgaon and Noida are
also witnessing a correction in rentals up to 10-15 per cent, the study forecasted.
According to the Assocham's latest estimates, while the IT
sector continues to employ over four million people, mostly in the four to five
big cities, the hiring growth has subdued. "The IT and other services like
financials are among the sectors which pay well. Besides, the age profile of
these employees is quite tempting for the marketers. They are good spenders and
want good life. These factors kept the markets for rentals pushing up,
especially in gated and well-equipped housing complexes and societies in
Bengaluru, Gurgaon, and Hyderabad. There is certainly a pause
visible," said D.S. Rawat, Secretary General, Assocham.
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