Due to the increase in demand, some of the top cities in India witnessed a sharp increase in the average monthly rent. Even as the demand for owning a home increased, home loan rates were making potential buyers wary about investing.
Now according to a latest report by property consultant Anarock, some cities have witnessed a jump in rental prices over time.
Cities such as Bengaluru, Pune, Delhi-NCR, Mumbai Metropolitan Region, Chennai, Hyderabad and Kolkata registered an increase in average monthly rent between 11 and 24%.
Karnataka capital Bengaluru led the cities where some areas of the city witnessed a 24% increase in rents.
According to Anarock, north and east Bengaluru have seen an increase of up to 24% in average monthly rents of 1,000 sq ft two bedroom apartments across 7 major cities in the last one year.
Anarock said Thanisandra Main Road and Marathahalli-ORR in Bengaluru recorded the highest residential rental growth of 24% each year in the January-March period for a standard 2BHK home of 1,000 sq ft area.
Whitefield and Sarjapur in Bengaluru were at the second and third places, with an increase of 21% and 20% respectively in rentals between January-March 2022 and January-March 2023.
The consultant said that areas in East and North Bengaluru have seen a pick-up in rental demand.
Bengaluru currently has the highest rental yield among all major cities at 4.1%, followed by Mumbai at 3.9%.
Prashant Thakur, Senior Director and Head-Research, Anarock Group, said, “When it comes to rental demand and rising rents, Bengaluru is currently among the top 7 cities, along with East and North Bengaluru on the rental radar map But the biggest setback is for the IT/ITeS belt out there.”
Settle co-founder Abhishek Tripathi said, “During the pandemic, a place like Bangalore was heavily invested in hiring talent, especially in the IT sector and startups. At the same time, due to labor shortage, growth in building supply was restricted and when lockdown restrictions were lifted and offices started opening, people started moving to Tier-I cities.”
“This disparity has created a housing crisis, especially in Tier 1 cities like Bangalore. Hence, the increase in fares is a result of these multiple factors,” Tripathi said.
As per the report, the average monthly rent for a 1,000 sq ft standard 2BHK home on Thanisandra Main Road increased from Rs 21,000 per month in Q1 (January-March) 2022 to Rs 26,000/month in Q1, 2023.
In Marathahalli-ORR, the average monthly rent increased from 22,500/month last year to 28,000/month in Q1 2023.
Data shows that three major Pune markets with high rental growth between Q1 2022 and Q1 2023 are Hinjewadi, Baner and Wagholi, which saw rental growth of 19%, 15% and 13%, respectively .
In Chennai, the top 3 markets to see high rental price growth are Pallavaram, Perambur and Oragadam, with rents increasing by 16%, 10% and 11% respectively during this period.
In NCR, the top three markets were Sohna Road in Gurugram (13% increase in rental value), Sector-150 in Noida (15% increase) and Dwarka in Delhi with 10% rental value increase.
In MMR, the top three markets for rental value growth were Chembur, Ghodbunder Road (Thane) and Mulund, which saw an increase of 17%, 14% and 14%, respectively.
The top three Kolkata markets with high rental value growth between Q1 2022 and Q1 2023 were EM Bypass, Joka and Rajarhat, where rents increased by 13%, 11% and 10%, respectively.
In Hyderabad, the top three markets were Hitech City and Kondapur, which saw a 12% increase in rental prices each, and Gachibowli saw an 11% increase.
Interestingly, the latest data comes after another report stated that more than 95% of potential home buyers believe that a further increase in the interest rate on home loans will hinder their purchase, according to a CII-Anarock survey. will influence decisions.
Anarock said in a statement, ’96 per cent of buyers have confirmed that a further increase in home loan rates will impact housing demand. Higher home loan rates will affect their home buying decisions in future.
Contrary to market expectations, RBI kept the repo rate unchanged in its recent monetary policy.
For more than 80% of property seekers, price remains an important factor, as the original cost of property has increased in the last one year, apart from home loan rates.
(with inputs from agencies)
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