While property prices keep going up in OMR, rental of certain type of homes is not catching up because of huge supply.
6 to 8 months ago, apartment prices in Sholinganallur was around 4000 to 4200 per SF, today it is hovering around 5000 per SF. Similarly, another of our favorite location, Medavakkam, has seen prices go up from 3600 per SF to 4500 per SF in the last one year.
Plenty of builders are creating a huge supply of homes in OMR, which puts pressure on rental rates. 2BHKs are able to hold their rent quite well because of their demand since most renters are usually young and have smaller families, so they prefer a 2BHK. But 3BHKs are having to drop their rent significantly to get renters. In many complex, the rental difference between 2 and 3BHKs is just 1k. This situation will change, but only when the supply/demand situation reverses.
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