Housing rental grow up to 30% across top seven cities during Jan-Sept 2023
NEW DELHI: Housing rents increased by over 30% in the top seven cities, led by leading IT/ITeS hubs Bengaluru, Hyderabad, and Pune in the first nine months of 2023, according to ANAROCK Research data.
Residential rentals in Bengaluru’s prominent areas soared by over 30% in the first nine months of 2023. A standard 2BHK flat of approx. 1,000 sq. ft. area in Bengaluru’s Whitefield saw rents grow by 31% in 9M 2023, followed by Sarjapur Road where rents for such homes rose by 27% in this period.
In Whitefield, average monthly rent for a standard 2BHK home of 1,000 sq. ft. increased from Rs 24,600 per month by 2022-end to Rs 28,500 per month by September-end 2023.
Hyderabad witnessed the second-best rental value growth with key markets in the city seeing up to 24% growth in this period. In HITECH City, the average rents stood at Rs 24,600 per month by 2022-end; by the end of Q3 2023, they were Rs 28,500 per month – a 16% growth in the nine-months period.
Gachibowli saw rents zoom up by 24% in the same period – from Rs 23,400 per month by 2022-end to Rs 29,000 per month by September-end this year.
The Hinjewadi micro-market in Pune recorded a rental value growth of 17% in the last nine months. Here, the average rents were Rs 21,000 per month by 2022-end and Rs 24,500 per month by September-end 2023. Rents in Wagholi increased by 18% during the said period.
Anuj Puri, chairman, ANAROCK Group, said, “However, we may now see rental values begin to stabilize in most cities in the ongoing quarter as renting usually remains low in the last quarter of the year. Rents will once again build up steam when renting picks in the January to March period.”
In the National Capital Region (NCR), the top three markets were Sohna Road in Gurugram (rental values up by 11%), Sector-150 in Noida (13% growth) and Dwarka in Delhi (14% growth).
In Mumbai Metropolitan Region (MMR), the top two markets to see rental value increases were Chembur and Mulund, which saw 14% and 9% growth, respectively.
Kolkata’s top two markets for high rental value growth in 9M 2023 were EM Bypass and Rajarhat, which saw 14% and 9% growth, respectively.
Among the top seven cities, Bengaluru has the highest rental yield of 4.35% as of September 2023-end, followed by Mumbai with 4.05%.
