N0ew Delhi, Feb 13 (IANS) Average monthly residential rentals in the top seven cities in both the luxury and the mid segment categories, were on a roll in 2022.
As per latest ANAROCK data, the average monthly rentals in the prominent luxury micro-markets of the top 7 cities increased by anywhere between 7-18 per cent in 2022 over 2019.
NCR’s Golf Course Extension saw the highest growth of 18 per cent – from Rs 49,000 a month in 2019 to Rs 58,000 in 2022 for luxury homes of approximately 2,000 sq. ft. area. This was followed by Hyderabad’s Jubilee Hills, which witnessed a 17 per cent jump in the same period – from Rs 54,000 per month in 2019 to Rs 63,000 in 2022.
Mumbai’s Worli saw rental growth of 16 per cent in the period – from Rs 2.05 lakh per month in 2019 to Rs 2.38 lakh in 2022. Bengaluru’s Rajaji Nagar also saw 16 per cent growth in average monthly rental values for luxury homes – from Rs 56,000 per month in 2019 to Rs 65,000 in 2022. Average luxury home rentals in Anna Nagar, Chennai rose from Rs 55,000 in 2019 to Rs 64,000 a month in 2022 – another 16 per cent jump.
Latest ANAROCK data showed that the key residential rental hotspots saw up to 23 per cent growth in average monthly rentals between 2019 and 2022. Noida’s Sector-150 remained on top with monthly rentals for a standard 1,000 sq. ft. flat at approx. Rs 19,000 a month, from Rs 15,500/month in 2019.
Pune’s prominent micro-markets Hinjewadi and Wagholi saw average monthly rentals for a standard 1,000 sq. ft. home go up by 20 per cent and 21 per cent respectively in this period. Bengaluru’s Whitefield recorded approximately 18 per cent average rental growth – from Rs 19,000 a month in 2019 to Rs 22,500 in 2022.
Prominent localities with high rental demand saw double-digit rental growth between 2019 and 2022, with Hyderabad being a notable exception. Key areas like Gachibowli and HITECH City recorded single-digit growth of 6 per cent and 7 per cent, respectively. Mulund in MMR also saw just 6 per cent growth in residential rentals in this period.
“Rental demand increased substantially in 2022,” says Anuj Puri, Chairman – ANAROCK Group. “With more companies calling their employees back to the office, including in the hybrid mode, rental demand is rising across the 7 top cities, after plummeting during the two worst Covid-19 waves. We still recall the death knell being rung for the rental market in 2020.”
As things stand now, rental demand will continue to head northward in 2023.
“The surge in rentals is driven by resurging demand on the back of most offices re-establishing normal in-office work,” says Puri. “Employees returning from their hometowns or other parts of the city tend to rent homes for at least the short-term, often to consider purchases at a later stage. As both property prices and interest rates continue to rise, the overall cost of property acquisition is increasing, leading to an increase in deferred property purchase decisions. Resultantly, they will seek rental homes,” he added.
Also, with the new academic session imminent, more parents will look to locate the family close to schools, leading to further hikes in rental demand in the coming months.
–IANS
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