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 the workplace, bidding farewell to the era of remote work? If so, you're likely navigating the quest for a rental home. Wondering just how much you'll need to budget for that standard 2 BHK abode in these urban hubs? Here's a clearer picture for you to know the rental trends across some of the prime office-centric cities.

Bengaluru

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

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

Hyderabad

In Hyderabad, the rental market for standard 2 BHK 1,000 sq ft houses also saw upward trends in average rents across prominent micro markets between the end of 2022 and the first quarter of 2024. In HITECH City, the average rent climbed from Rs 24,600 at the end of 2022 to Rs 32,500 by Q1 2024, reflecting a 5 per cent increase from the 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 the same period. The growth in these areas, likely influenced by factors such as technological advancements, corporate presence.

Pune

In Pune, the rental market for standard 2 BHK 1,000 sq ft houses depicted an upward trajectory in average rents across key micro markets from the end of 2022 to the first quarter of 2024. In Hinjewadi, the average rent increased from Rs 21,000 at the close of 2022 to Rs 26,500 by Q1 2024, marking a 4 per cent growth from the end of 2023, as per the 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 the same period. These trends highlight sustained demand and development driven by factors such as IT sector growth.

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

National Capital Region

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

In Sector-150 (Noida), the 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, the average rent escalated from Rs 22,000 in 2022 to Rs 27,400 in Q1 2024, marking a 6 per cent growth over the same period. This growth is influenced by factors such as infrastructure development and overall urbanisation.

Mumbai Metropolitan Region

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

In Chembur, the average rent increased from Rs 51,000 at the close of 2022 to Rs 62,500 by Q1 2024, marking a 4 per cent growth from the 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 the same period. The trend indicates sustained demand due to proximity to commercial hubs, and overall urbanisation pressures in the MMR.
 

Kolkata

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

Chennai

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

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

“Residential rental yields in India had chronically stagnated before the Covid-19 pandemic, with the 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 heading north too. IT-dominated cities including Bengaluru, Gurugram, Pune and Noida,and also MMR, have seen considerable upticks in their rental values, and therefore yields,” he added.