Rents on a Roll – Pune’s Hinjewadi and Wagholi saw average monthly rentals go up by 20% & 21% respectively between 2019 to 2022
Mumbai, 13 February 2023: Average monthly residential rentals in the top 7 cities in both the luxury and the mid segment categories, were on a roll in 2022. Latest ANAROCK data shows that the key residential rental hotspots saw up to 23% growth in average monthly rentals between 2019 and 2022. Noida’s Sector-150 remained on top with monthly rentals for a standard 1,000 sq. ft. flat at approx. INR 19,000/month, from INR 15,500/month in 2019.
Pune’s prominent micro-markets Hinjewadi and Wagholi saw average monthly rentals for a standard 1,000 sq. ft. home go up by 20% and 21% respectively in this period. Bengaluru’s Whitefield recorded approx. 18% average rental growth – from INR 19,000/month in 2019 to INR 22,500/month in 2022.
Prominent localities with high rental demand saw double-digit rental growth between 2019 and 2022, with Hyderabad being a notable exception. Key areas like Gachibowli and HITECH City recorded single-digit growth of 6% and 7%, respectively. Mulund in MMR also saw just 6% growth in residential rentals in this period.
|Avg. Rent for standard 2BHK unit of 1,000 sq. ft. area (INR/month)|
|Cities||Micro Markets||2019||2022||% Change (2019 vs 2022)|
“Rental demand increased substantially in 2022,” says Anuj Puri, Chairman – ANAROCK Group. “With more companies calling their employees back to the office, including in the hybrid mode, rental demand is rising across the 7 top cities, after plummeting during the two worst Covid-19 waves. We still recall the death knell being rung for the rental market in 2020.”
As things stand now, rental demand will continue to head northward in 2023.
“The surge in rentals is driven by resurging demand on the back of most offices re-establishing normal in-office work,” says Puri. “Employees returning from their hometowns or other parts of the city tend to rent homes for at least the short-term, often to consider purchases at a later stage. As both property prices and interest rates continue to rise, the overall cost of property acquisition is increasing, leading to an increase in deferred property purchase decisions. Resultantly, they will seek rental homes.
Also, with the new academic session imminent, more parents will look to locate the family close to schools, leading to further hikes in rental demand in the coming months.
Rentals Surge in Top Luxury Housing Markets
As per latest ANAROCK data, the average monthly rentals in the prominent luxury micro-markets of the top 7 cities increased by anywhere between 7-18% in 2022 over 2019.
|Avg. Monthly Rentals: Top Luxury Markets (For 2,000 sq. ft. area)|
|City||Micro Market||2019 (INR/M)||2022 (INR/M)||% Change (2019 vs 2022)|
|NCR||Golf Course Ext. Rd||49,000||58,000||18%|
|Golf Course Rd||70,000||80,000||14%|
1) NCR’s Golf Course Extension saw the highest growth of 18% – from INR 49,000/month in 2019 to INR 58,000/month in 2022 for luxury homes of approx. 2,000 sq. ft. area.
2) This was followed by Hyderabad’s Jubilee Hills, which witnessed a 17% jump in the same period – from INR 54,000/month in 2019 to INR 63,000/month in 2022.
3) Mumbai’s Worli saw rental growth of 16% in the period – from INR 2.05 lakh per month in 2019 to INR 2.38 lakh per month in 2022.
4) Bengaluru’s Rajaji Nagar also saw 16% growth in average monthly rental values for luxury homes – from INR 56,000/month in 2019 to INR 65,000/month in 2022.
5) Average luxury home rentals in Anna Nagar, Chennai rose from INR 55,000/month in 2019 to INR 64,000/month in 2022 – another 16% jump.
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