Housing rental grow up to 30% across top seven cities during Jan-Sept 2023

Source: ETRealty

New Delhi: According to ANAROCK Research data, housing rent in the top seven cities increased by 30% in the first nine months of 2023, driven by the leading IT/ITeS hub Bengaluru, Hyderabad, and Pune.

Bengaluru’s key areas witnessed a surge of over 30% in residential rentals in the first nine months of 2023. Rents for a standard 2BHK flat of approx. 1,000 sq. ft. area in Whitefield grew by 31% in 9M 2023, followed by Sarjapur Road, where such homes saw a 27% rise in this period.

In Whitefield, the average monthly rent for a standard 2BHK home of 1,000 sq. ft. went up from Rs 24,600 per month by the end of 2022 to Rs 28,500 per month by the end of September 2023.

Hyderabad recorded the second-highest rental value growth, with major markets in the city registering up to 24% growth in this period. In HITECH City, the average rents were Rs 24,600 per month by the end of 2022; by the end of Q3 2023, they were Rs 28,500 per month - a 16% increase in the nine-month period.

Gachibowli saw rents soar by 24% in the same period - from Rs 23,400 per month by the end of 2022 to Rs 29,000 per month by the end of September this year.

The Hinjewadi micro-market in Pune posted a rental value growth of 17% in the last nine months. Here, the average rents were Rs 21,000 per month by the end of 2022 and Rs 24,500 per month by the end of September 2023. Rents in Wagholi rose by 18% during the said period.

Anuj Puri, chairman, of 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 the 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%.