Vijayawada saw a sudden spike in house rent in 2015. Two and three-bedroom houses saw a huge spike in demand and rent in some areas touched Rs 20,000 a month. Many tenants found it unfeasible and moved to smaller homes. The demand for shelter in urban slums too saw a rise.
But now, the situation has changed quickly. With the pandemic causing job losses and companies to cut salaries and the proposed shift of executive capital to Visakhapatnam, more and more people are choosing to move to the outskirts in hope of cheaper rents.
K Santosh Chaitanya, who works at a private company, said, “My organisation reduced my salary by 40%. So I have had to cut down on my monthly expenses. I have moved to Gudavalli recently where houses are more affordable.”
As a consequence, house-owners are having a tough time as tenants keep vacating houses. Around 20% houses have been vacated over the last few months and have not found new takers.
M Hanumantha Rao of Durgapuram said, “My family is entirely dependent on rent. Five single-bedroom flats in my house are lying vacant for the last three months. Tenants have moved out for various reasons. We have cut rent by 30%, but still haven’t found any takers.”