Even as the real estate market is witnessing significant growth in India, expats are also taking part in it. As a result of this, ‘dollar homes’ are also gaining traction in the country. According to a moneycontrol report, demand for rented accommodation by expats or ‘dollar homes’ in Gurugram, Delhi, and Mumbai is witnessing a surge and rents have risen by 40-50 per cent.
The rent hikes are on account of higher demand for a few homes with modern amenities. The report, quoting brokers, said the demand is so high here that a house listed today is off the block within 24 hours and the prospective tenants are outbidding each other.
Rents range between Rs 3 lakh per month to Rs 14 lakh per month. The ‘dollar homes’ guarantee dollar income to the landlords, and it had lost its sheen after the pandemic 2020.
In Delhi, Jor Bagh, Vasant Vihar, Malcha Marg, Shanti Niketan and West End are preferred locations. The regions are within close proximity to embassy schools and consulates.
According to the moneycontrol report, Sush Clays, founding partner of Welcome Home Luxury Real Estate Services, who has been helping expats set up homes in India, said there is a shortage of modern redeveloped apartments.
“Expats generally demand modern apartments that come with high-end kitchen fittings, appliances, bathrooms with branded accessories and standardised interiors, located close to embassy schools and as far as possible close to the diplomatic zones,” she said, according to the moneycontrol report. She also said rents of apartments depend on these requirements being met.
Clays also said that with more international companies setting up shop in the country, an increasing number of global business tie-ups and increase in embassy staff, the demand for luxury rental housing has been hit by supply shortage.
“There is a rush to find the best apartment. Scouting for the right apartment that offers all modern amenities has become as competitive as London’s Mayfair. You have a listing today and it is gone tomorrow. Tenants are trying to outbid each other, with higher rentals and units flying off the shelf within 24 hours,” she said.
“The sign-and-go syndrome has caught on, with too many people chasing fewer apartments. There is also a new trend of younger expats who demand smaller apartments of 1,600-2,000 sq ft but with state-of-art appliances. These cost upwards of Rs 2 lakh per month in rent,” she said. A security deposit of 2-3 months is also mandatory.
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