At Lokhandwala Complex in Andheri (West), owners have not been able to lease out their plush 3-bedroom hall kitchen (BHK) flats for the last four months despite revising the monthly rent downwards to Rs 65,000 from Rs 85,000. At Matunga, a one-BHK flat was recently leased out at Rs 32,000, while the market rental rate is set at Rs 38,0000-40,000 a month. At Carter Road in Bandra (West), lessees are quoting Rs9 0,000 for a 3BHK, which earlier commanded a rent of Rs 1.5 lakh a month. At Powai, rents are in the range of Rs 30, 000 to Rs 1.10 lakh a month, down from the Rs 40,000 to Rs 1.5 lakh band quoted earlier. The slowdown in the sale of flats is spreading to Mumbai’s rental market. According to property brokers, in the past three months, rentals have dropped by almost 20-25% in prime residential areas. The drop is a result of high lease rates demanded by landlords and cost-cutting measures adopted by companies in the light of the global credit crunch. And the effect is visible in areas like Bandra, Powai, Sion, Andheri and LBS Marg where a large number of investors have put their flats on lease.

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