Recession has rents tumbling in Begumpet

The hustle and bustle is no longer there. ‘To-Let’ boards are a common sight in the area, vacant houses await new occupants and most hostels (PG accommodation) are running short of boarders.

Begumpet, the once-preferred abode of IT and ITeS professionals, Satyamites in particular, is today struggling to find tenants for the many apartments that have sprouted in its residential areas -- Prakash Nagar, Paigah Colony, Sindhi Colony, Motilal Nehru Nagar and Mayuri Nagar.

“With a large number of associates of Mahindra Satyam leaving for their hometowns after the virtual pool programme (VPP) of the company came into effect, many houses are lying empty,” says Mustafa, a housing agent. Owing to the slump, landowners seem to be going by the adage, something earned is better than nothing and have slashed house rentals by around 25 per cent, he says.

“A friend of mine who used to charge Rs. 14,000 a month for his fully furnished flat is now renting the same for Rs.10,000,” says Ajay Mehta of Sindhi Colony. “The landlord of my friend’s apartment reduced the rent from Rs.10,000 to Rs.8,000 after two of his roommates were included in VPP,” says Karthik, a Satyamite. Many hostels have also decreased their monthly charges by as much as Rs.500.

Thanks to the pruned rentals, housing has become affordable to Madhukar and L. Sandeep, who work in smaller firms. “We managed to get a furnished one bedroom flat for Rs. 6,000,” Mr. Sandeep says. Mr. Mustafa discloses there are increasing enquiries from banking and call centre executives of late.

Famous for its street-side North Indian eateries and ice cream parlours, Sindhi Colony is today bereft of the vibrant atmosphere. “Satyam employees comprised nearly 70 per cent of our customers. Our business has been hit by nearly 30 per cent after many of them left for home,” says Srikanth Mohan, in-charge of ‘Occasion Paite Pooja’, a favourite haunt of many youngsters.

“Earlier I used to do Rs. 3,000 to 4,000 business a day. It has come down to Rs. 400 now,” laments Anil Reddy of Creations Flower Boutique. “Recession has hit all businesses in a big way. Sometimes we are forced to sell for cheaper prices,” he says.

However, shopkeepers lament that their shop rentals have not come down despite the lull in business. “For a 300 sq.ft space, one has to shell out anything between Rs. 20,000 to Rs.30,000,” says Mehta who runs Sri Raadhe Ice Cream.