The Bengaluru neighbourhood of Whitefield saw the largest increase in home rent, at 31 per cent and the percentages that followed were 27 per cent in Hyderabad’s Sarjapur Road and 24 per cent in Gachibowli
The top seven Indian cities’ home rent increased by 30 per cent in the first nine months of 2023 compared to the same period the previous year, driven primarily by IT hubs, according to data released by real estate consultancy Anarock on Thursday. Pune, Hyderabad and Bengaluru saw the biggest rent increases.
The Bengaluru neighbourhood of Whitefield saw the largest increase in home rent, at 31 per cent. The percentages that followed were 27 per cent in Hyderabad’s Sarjapur Road and 24 per cent in Gachibowli. Bengaluru, Hyderabad, Pune, National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Kolkata and Chennai are the top seven cities according to the data. The Wagholi area of Pune saw an 18 per cent increase in rent, which drove the overall increase.
One of the most amazing recovery stories of the post-pandemic housing sector is residential rents, according to Anuj Puri, chairman of Anarock Group, following an almost terminal decline during the first and second Covid-19 waves.
Bengaluru remains distinct among the top seven cities, having already gained attention for its outrageous rental prices following the Covid-19 pandemic. Notwithstanding industry efforts to tighten restrictions, the fact that the next two cities with the highest growth rates in rental values are also heavily focused on IT/ITeS highlights the core resilience of the Indian infotech sector.
Bengaluru was the top city in terms of rental yield or the annual return on capital invested in a property. At the end of the September quarter, it reported a 4.35 per cent rental yield. In Mumbai and Gurgaon, it was followed by 4.05 per cent and 4 per cent, respectively.
The yield exceeded the 3 per cent reported before the Covid-19 pandemic. Due to the low hiring in the final quarter of the year, rent in Indian cities has stabilised as of late. However, they should start to pick up in 2024’s first quarter, the report added.