Villa rents decline in india

In the last year, rental rates for high-end villas in the expat hub have plummeted by 25 to 30 per cent. Constultants L J Hooker reported that rents at Palm Meadows, one of the city’s high profile developments, fell to Rs 3 lakh per month, from 4 a year ago. DTZ India has also recorded falling rents.

“Budgets for most corporates have been reduced reflecting the tighter global markets. We have also seen many companies trying to reduce expat headcounts to save money,” Alexander Moore, chief executive officer of L J Hooker India, told The Times of India.

Moore estimated that in the first quarter of 2013, 50 expats relocated to Bangalore compared to 100 last year.

"European companies in particular have lowered their budgets," he added.

"Many companies have removed accommodation from their HR policy (which was given over and above the CTC)," commented Mars Realty partner Prashanth Sambargi, who noted that firms renting bigger apartments for senior employees had contributed to the falling rental values of villa.

As a result, some apartment rents are now on the up, with growth ranging from 5 per cent to 15 per cent, depending on location and size.