Housing rents proceed to soar throughout the highest-7 cities, led by main IT/ITeS hubs Bengaluru, Hyderabad, and Pune. A regular 2BHK flat of about 1,000 sqft space in Bengaluru’s Whitefield noticed rents develop 31 per cent within the first 9 months of 2023, adopted by Sarjapur Road the place rents for such properties rose by 27 per cent on this interval, in response to a report by Anarock.
Hyderabad witnessed the second-highest rental worth progress with key markets within the metropolis seeing as much as 24 per cent progress on this interval towards all distinguished localities within the prime 7 cities of India. The third distinguished metropolis to see good rental values progress was Pune, the place the Hinjewadi micro-market recorded a rental worth progress of 17 per cent within the final 9 months.
In Bengaluru, in rupee phrases, common month-to-month lease for the standard 2BHK house of 1,000 sqft at Whitefield elevated to Rs 28,500 per thirty days by the tip of September 2023, in contrast with Rs 24,600 per thirty days by the tip of 2022. At Sarjapur Road, common month-to-month rents elevated to Rs 30,500 per thirty days in September 2023, from Rs 24,000 a month in 2022-finish.
Residential leases in Bengaluru’s distinguished areas soared by over 30 per cent within the first 9 months of 2023 (9M 2023), in response to ANAROCK Research knowledge.
The subsequent two rental progress hotspots are additionally IT/ITeS hubs. Hyderabad witnessed the 2nd-finest rental worth progress with key markets within the metropolis seeing as much as 24 per cent progress on this interval towards all distinguished localities within the prime 7 cities of India.
In the hello-tech metropolis, the typical rents stood at Rs 24,600 per thirty days by 2022-finish. By the tip of Q3 2023, they had been Rs 28,500 a month, a 16 per cent progress within the 9-month interval. Gachibowli noticed rents zoom up by 24 per cent in the identical interval — from Rs 23,400 per thirty days by 2022-finish to Rs 29,000 per thirty days by September-end this yr.
The third distinguished metropolis to see good rental values progress was Pune, the place the Hinjewadi micro-market recorded a rental worth progress of 17 per cent within the final 9 months. Here, the typical rents had been Rs 21,000 per thirty days by 2022-finish and Rs 24,500 per thirty days by September-end 2023.
Anuj Puri, chairman of ANAROCK Group, mentioned, “After an almost terminal downturn during the first and second Covid-19 waves, residential rents are one of the most remarkable comeback stories of the post-pandemic housing sector. The first nine months of 2023 saw housing rents soar by over 30 per cent in the top 7 cities. Bengaluru, already in the limelight for its astronomic rental values post-Covid-19, continues to stand out among the top 7 cities.”
He added that the subsequent two hotspots for rental values progress are additionally IT/ITeS-centric cities additionally underscores the elemental energy of the Indian Infotech sector, regardless of belt-tightening strikes within the business.
However, we might now see rental values start to stabilise in most cities within the ongoing quarter as renting often stays low within the final quarter of the yr, says Puri.
“Rents will once again build up steam when renting picks in the January to March period,” he mentioned. “This is when Indians usually relocate for better job opportunities amid increased hiring in the new financial year.”
Residential rental yield — the annual ROI from capital invested in a property — has by no means been spectacular in India. The nationwide common of three per cent for the previous few years earlier than the pandemic was kind of par for the course. However, with rental demand selecting up after COVID-19 in 2022, there was a substantial change — one of many foremost the explanation why traders are again on the housing market.
Among the highest-7 cities, Bengaluru has the best rental yield of 4.35 per cent as of September 2023-finish, adopted by Mumbai with 4.05 per cent. Pre-Covid in 2019, the rental yield in Bengaluru was at 3.6 per cent — the best again then, as effectively.
