Here’s the current rental in top 5 Indian cities: Bengaluru, Gurugram, Noida…

Urban Rental Trends: Are you making a move to one of India's bustling metropolitan cities for work? Or perhaps your office is beckoning you back to workplace, bidding farewell to era of remote work? If so, you're likely navigating quest for a rental home. Wondering just how much you'll need to budget for that standard 2 BHK abode in se urban hubs? Here's a clearer picture for you to know rental trends across some of prime office-centric cities.

Bengaluru

In Bengaluru, average rents for a standard 2 BHK 1,000 sq ft house witnessed notable increases across key micro markets from end of 2022 to first quarter of 2024. In Sarjapur Rd, rents escalated from Rs 24,000 at close of 2022 to Rs 34,000 by Q1 2024, marking an 8 per cent increase from end of 2023, according to data from a recent Anarock report.

Similarly, in Whitefield, average rent surged from Rs 22,500 in 2022 to Rs 32,500 in Q1 2024, reflecting an identical 8 per cent growth over same period. This upward trajectory indicates a sustained demand for housing in se areas, possibly driven by factors such as urbanisation, employment opportunities, and infrastructure development.

Hyderab

In Hyderab, rental market for standard 2 BHK 1,000 sq ft houses also saw upward trends in average rents across prominent micro markets between end of 2022 and first quarter of 2024. In HITECH City, average rent climbed from Rs 24,600 at end of 2022 to Rs 32,500 by Q1 2024, reflecting a 5 per cent increase from end of 2023.

Likewise, in Gachibowli, rents rose from Rs 23,400 in 2022 to Rs 32,000 in Q1 2024, also representing a 5 per cent growth over same period. growth in se areas, likely influenced by factors such as technological vancements, corporate presence.

Pune

In Pune, rental market for standard 2 BHK 1,000 sq ft houses depicted an upward trajectory in average rents across key micro markets from end of 2022 to first quarter of 2024. In Hinjewi, average rent increased from Rs 21,000 at close of 2022 to Rs 26,500 by Q1 2024, marking a 4 per cent growth from end of 2023, as per Anarock data.

Similarly, in Wagholi, rents surged from Rs 17,000 in 2022 to Rs 22,000 in Q1 2024, reflecting a 7 per cent rise over same period. se trends highlight sustained demand and development driven by factors such as IT sector growth.

"Going by current momentum, re are no immediate prospects of rental inflation trend slowing down. In fact, it is expected to pick up in next few quarters," said Santhosh Kumar, Vice Chairman, Anarock Group

National Capital Region

In National Capital Region (NCR), various micro markets witnessed an upward trend in average rents for standard 2 BHK 1,000 sq ft houses from end of 2022 to first quarter of 2024. On Golf Course Ro, average rent increased from Rs 37,000 at close of 2022 to Rs 43,000 by Q1 2024, marking a 4 per cent growth from end of 2023. Similarly, Sohna Ro saw rents rise from Rs 28,500 in 2022 to Rs 34,300 in Q1 2024, reflecting a 5 per cent increase over same period.

In Sector-150 (Noida), average rent surged from Rs 19,000 in 2022 to Rs 24,000 in Q1 2024, indicating a substantial 9 per cent growth. New Gurugram experienced a similar trajectory, with rents increasing from Rs 22,500 in 2022 to Rs 26,500 in Q1 2024, representing a 4 per cent rise.

Moreover, in Dwarka, average rent escalated from Rs 22,000 in 2022 to Rs 27,400 in Q1 2024, marking a 6 per cent growth over same period. This growth is influenced by factors such as infrastructure development and overall urbanisation.

Mumbai Metropolitan Region

In Mumbai Metropolitan Region (MMR), rental market for standard 2 BHK 1,000 sq ft houses also demonstrated an upward trend in average rents across key micro markets from end of 2022 to first quarter of 2024.

In Chembur, average rent increased from Rs 51,000 at close of 2022 to Rs 62,500 by Q1 2024, marking a 4 per cent growth from end of 2023.

Similarly, in Mulund, rents rose from Rs 41,000 in 2022 to Rs 48,500 in Q1 2024, reflecting a 4 per cent increase over same period. trend indicates sustained demand due to proximity to commercial hubs, and overall urbanisation pressures in MMR.
 

Kolkata

In Kolkata, rental market for standard 2 BHK 1,000 sq ft houses displayed an upward trajectory in average rents across key micro markets from end of 2022 to first quarter of 2024. Along EM Bypass, average rent increased from Rs 22,000 at close of 2022 to Rs 27,000 by Q1 2024, marking a 5 per cent growth from end of 2023.

Similarly, in Rajarhat, rents rose from Rs 16,500 in 2022 to Rs 19,000 in Q1 2024, reflecting a 3 per cent increase over same period.

Chennai

In Chennai, rental market for standard 2 BHK 1,000 sq ft houses demonstrated an upward trend in average rents across significant micro markets from end of 2022 to first quarter of 2024. In Perambur, average rent increased from Rs 18,000 at close of 2022 to Rs 21,000 by Q1 2024, marking a 4 per cent growth from end of 2023.

Similarly, in Pallavaram, rents rose from Rs 17,000 in 2022 to Rs 20,300 in Q1 2024, reflecting a 4 per cent increase over same period.

Residential rental values in India’s top cities have resurged tremendously after pandemic, with 2023 seeing m soar by over 30 per cent YoY. In last quarter of 2023, rental values stabilised in most cities as renting activity usually abates in last quarter of year. However, rental real estate market picked up momentum again in first quarter of 2024.

“Residential rental yields in India h chronically stagnated before Covid-19 pandemic, with national average at just 3 per cent for many years,” said Santhosh Kumar, Vice Chairman, Anarock Group.

"With post-pandemic rental demand soaring after offices resumed, rental yields are heing north too. IT-dominated cities including Bengaluru, Gurugram, Pune and Noida,and also MMR, have seen considerable upticks in ir rental values, and refore yields,” he ded.