Pune’s Koregaon Park And Prabhat Road Saw Highest Rental Growth In Last Two Years

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Mumbai, 21 September 2022: Residential rental markets across the top 7 cities have made a strong comeback after offices and schools reopened in 2022. Analysis of the average monthly rental trends across the leading luxury localities in the top 7 cities reveals that most markets have saw double-digit growth in the last two years, with only a few exceptions.

As per latest ANAROCK data, the average monthly rentals in the prominent luxury micro-markets across the top 7 cities increased anywhere between 8-18% in the last two years. Mumbai’s Worli saw the highest rental growth of 18% in the period – from INR 2 lakh per month in 2020 to INR 2.35 lakh in 2022 for luxury homes of minimum 2,000 sq. ft. area.

This was followed by Bengaluru’s Rajaji Nagar, which witnessed a 16% jump in the same period – from INR 56,000 in 2020 to INR 65,000 in 2022.

 

Anuj Puri, Chairman – ANAROCK Group, says, “Residential rental demand skyrocketed across the top cities in 2022 with schools reopening classrooms and most companies calling employees back to offices. Pent-up rental demand hitting the market has caused a demand-supply mismatch in many areas, resulting in monthly rental hikes. Also, post-Covid tenant preference has tilted towards large-size homes.”

“Most prominent luxury housing markets witnessed double-digit growth in rentals in the last two years,” says Puri. “Pre-Covid, average 2-year luxury rental increases at a given time were largely single-digit, between 5-7%.”

Avg. Monthly Rentals: Top Luxury Markets (For 2,000 sq. ft. area)
City Micro Market 2020 (INR) 2022 (INR) % Appreciation (2020 vs 2022)
Bangalore JP Nagar 46,000 52,000 13%
Rajaji Nagar 56,000 65,000 16%
Chennai Anna Nagar 56,000 63,000 13%
Kotturpuram 74,000 84,000 14%
Hyderabad Jubilee Hills 54,000 62,000 15%
HiTech City 53,000 59,000 11%
Kolkata Alipore 60,000 65,000 8%
Ballygunge 88,000 97,000 10%
MMR Tardeo 2,70,000 3,10,000 15%
Worli 2,00,000 2,35,000 18%
NCR Golf Course Ext. Rd 50,000 56,000 12%
Golf Course Rd 70,000 78,000 11%
Pune Koregaon Park 59,500 68,000 14%
Prabhat Road 64,000 69,000 8%

Capital Appreciation

Meanwhile, capital appreciation in these luxury markets remained in single digits (between 2-9%) in the last two years. Bengaluru’s Rajaji Nagar witnessed the highest capital appreciation of 9%, with average prices increasing from INR 5,698 per sq. ft. in 2020 to INR 6,200 per sq. ft. in 2022.

Top Luxury Hotspots – Rental vs Capital Price Changes

The luxury residential market has been on an upswing post the pandemic, with its overall sales share growing to about 14% in H1 2022. Even demand for rental luxury properties is on a high, resulting in growth in average monthly rentals.

Some of the prominent luxury markets in the top 7 cities that performed well in 2022 and may see further short to mid-term boosts:

Avg. Capital Prices: Top Luxury Markets
City Micro Markets 2020 (INR/sft.) 2022 (INR/sft.) % Appreciation (2020 vs 2022)
Bangalore JP Nagar 5,698 6,200 9%
Bangalore Rajaji Nagar 13,300 13,900 5%
Chennai Anna Nagar 11,300 11,850 5%
Chennai Kotturpuram 13,500 14,000 4%
Hyderabad Jubilee Hills 6,950 7,400 6%
Hyderabad HiTech City 5,675 6,100 7%
Kolkata Alipore 13,000 13,500 4%
Kolkata Ballygunge 11,350 11,700 3%
MMR Tardeo 41,862 43,000 3%
MMR Worli 38,560 39,350 2%
NCR Golf Course Ext. Rd 8,300 8,700 5%
NCR Golf Course Rd 13,150 13,500 3%
Pune Koregaon Park 11,128 11,600 4%
Pune Prabhat Road 12,500 12,900 3%

  • Bengaluru – the luxury residential hotspot JP Nagar saw avg. monthly rentals appreciate by 13% in 2022 over 2020, while capital prices in this period rose by 9%. Likewise, Rajajinagar saw rental prices rise by 16%, and capital prices by 5%.
  • MMR – luxury rentals in Tardeo rose 15% in this period, while capital prices increased by only 3%. Similarly, in Worli, the average monthly rentals for a minimum 2,000 sq. ft. area home increased by 18%, while capital prices saw a mere 2% jump.
  • NCR – rentals in luxury hotspot Golf Course Road increased by 11%, while capital prices saw a mere 3% rise. Likewise, Golf Course Extension Road saw rentals increase by 12% and capital prices by 5% in this period.
  • Chennai – luxury rentals in Anna Nagar rose 13% in this period, while capital prices increased by 5%. Similarly, in Kotturpuram, the average monthly rentals rose by 14% while capital prices rose by 4%.
  • Hyderabad – the luxury residential hotspot Jubilee Hills saw avg. monthly rentals appreciate by 15% in 2022 over 2020, while capital prices in this period rose 6%. HITECH City saw a rental price rise of 11%, while capital prices increased by 7%.
  • Pune – the rentals in Koregaon Park rose 14% in this period, while capital prices increased by 4%. In Prabhat Road, the average monthly rentals rose by 8% while capital prices rose by just 3%.
  • Kolkata – luxury home rentals in Alipore rose 8% in 2022 against 2020, while capital prices increased by 4%. Similarly, in Ballygunge, the average monthly rentals rose 10% while capital prices rose by 3%.