Rental Accommodation was flourishing couple of years back, but it is clearly not in a hot moment right now. This is happening right in front of us, when the news of first wave of coronavirus hit the mainstream, people started migrating from big cities to their hometowns. Things went very quiet and it was very clear, the reverse migration was happening at a larger scale. And like every sector, things go up and down in house rent as well.
So, if you think, this trend of lower rents in cities is going to continue, you’re in for a rude awakening.
In 2020 many tenants were able to benefit from the subsidised rent as the landlords struggled to find tenants to fill their rental homes. But the privileged of lower rent is soon going to be the thing of the past, and you can expect to see a surge in the prices once the Covid-19 restrictions are eased and the demand for housing spikes.
In this post let’s look at some of the possible reasons for surge in the rental prices.
It is important to understand the landscape of our economy, we witnessed a steady growth in 2019 and the covid-19 restrictions almost displaced our economy. But things cannot remain like this forever. People will find a way to get out of this situation and economy will bounce back. Most sectors will see a hike in prices to recover losses once the restrictions are completely eased. Many people who left cities in 2020 are returning back and things are getting normal. The only exception being the IT/ITES workforce who still have an option of working remotely.
Free Vaccination Drives
Several corporates in India have initiated a free vaccination drives for employees and their family members. Some companies have made it mandatory for employees to get vaccinated. And it’s definitely something that shows a sign of employees being called back to office sometime in the future.
Work from Home
While many believe that work form home has been really cost effective and the productivity of the employees has increased. The validity of this approach is to be seen in the long run, Although the work from home has been contradicted and getting a lot of mixed response, work from home has its downside too and it is true that work from home will not continue forever. Workers who moved back to their hometowns will soon be migrating back to cities and this could possibly see a hike in the Rents in the coming days.
Housing Rental sector behaviour
You got to understand that rents go up and down and it’s not a good place to be delusional. The world today is getting smaller with more technologies creating a platform for creative thinkers. The demand for rental homes will be a huge factor. However, it’s promising to see what’s happening in the technologies and other unorganized sector. There are new avenues that are opening up and generating revenues. It’s happening now and more and more people are returning to cities and it’s fair to say that housing rents are certainly going up.
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