Luxury Rentals on the Rise in Delhi-NCR as Executives and Expatriates Return to Work

Delhi-NCR, India – Luxury rentals in prime areas of South Delhi and Gurgaon's Golf Course Road have witnessed a significant increase as senior executives and expatriates resume work, according to market experts. Experts report a 14% year-on-year increase in rentals on Gurgaon's Golf Course Road, with a notable doubling of rentals in DLF5 Golf Links residences such as The Magnolias, The Aralias, The Camellias, and The Crest since 2020.

Savills India, a renowned real estate advisory firm, has noted substantial increases in luxury housing rentals in several micro-markets, primarily in Delhi-NCR. Central Noida, select areas of South and Central Mumbai, and South and East Bengaluru have also experienced a surge in luxury housing rentals.

The growing demand for luxury properties has directly impacted rental rates. As property prices rise, rental rates tend to follow suit. Mr. Viineet Chellani , CEO of Asset Deals, explains, "This indicates that the demand for and scarcity of such upmarket housing have led to an increase in the rental market for luxury residences, with landlords demanding higher rents as a result."

DLF5 Golf Links residences on Golf Course Road stand out as one of the most sought-after luxury and super-luxury rental segments across the country. Regional expatriate residents, businessmen, CXOs based in Delhi-NCR, and prospective homebuyers transitioning from bungalows to high-rise condominiums are among those driving the surge in rental demand in this area.

When it comes to renting luxury or super luxury residences in Gurgaon, high-net-worth individuals (HNIs), ultra HNIs, and CXOs consistently make Golf Course Road their first option. The value of rentals in luxury condominiums has increased significantly in recent years.

Notably, the surge in demand for luxury and high-end properties extends beyond the primary market, affecting the secondary market as well. Highly sought-after locations in major cities like Delhi, Mumbai, and Bengaluru are experiencing a shortage of such properties.

"Housing in India now entails more than just providing basic needs. It is more concerned with living optimally. This shift in thinking is visible in both renting and purchasing decisions. When you rent, you can enjoy extravagant amenities that would be out of your financial range if you purchased them." remarks Mr. Viineet Chellani, Managing Director of Asset Deals.

Rents in the top eight real estate markets offering ultra-luxurious apartments have risen over the last two years, according to data. This rise corresponds to increased occupancy levels as more people enter the workforce in India's main cities such as Mumbai, Bengaluru, Delhi, and Hyderabad.

At the end of 2022 compared to 2021, the capital appreciation in Delhi-NCR was reported to be 40% on an annual basis. Due to a lack of movement in the inventory and demand that is at a decade-high level, rentals are increasing in the same proportion as sales and following the same trajectory.

Luxury three-bedroom house rentals in South Delhi, based on Savills data, have risen to Rs 2.5 lakhs per month in 2022 from Rs 2.25 lakhs in 2021 and Rs 1.75 lakhs in 2020. In South Mumbai, average rentals have increased to Rs 5,80,000 per month in the second half of 2022 from Rs 5,30,714 a year earlier.

Unfurnished apartments at The Aralias, DLF Golf Links, start at Rs 4.5 lakhs per month; furnished apartments start at Rs 6 lakhs per month. Rental costs were approximately Rs 2.6 lakhs per month two years ago. The monthly rent at The Magnolias, DLF Golf Links, starts at Rs 5.5 lakhs for unfurnished homes and Rs 6.5 lakhs for equipped units.

The newest addition to DLF Limited 's super-luxury portfolio, The Camellias, commands the highest rentals, starting at Rs 7.5 lakhs per month for an unfurnished unit and Rs 10.5 lakhs per month for a furnished unit.

The demand for luxury rentals continues to rise as executives and expatriates in Delhi-NCR seek expensive accommodations with lavish amenities. Due to the scarcity of such homes, landlords are taking advantage of the rising demand by charging higher rental fees. As the trend continues, the rental market for luxury apartments in Delhi-NCR remains strong, drawing high-net-worth individuals and executives looking for the best possible living environment.