Bengaluru Leads As House Rents In Top Cities Jump By Double Digits: Anarock
Pune's Hinjewadi recorded the highest growth in rentals after three Bengaluru locations.
Bengaluru’s key areas have seen housing rents jump by over 20% year-on-year during the first quarter of 2023, according to data from Anarock Property Consultants Pvt.
The consultancy analysed monthly rents across prominent areas of the top seven cities—Hyderabad, National Capital Region, Mumbai Metropolitan Region, Kolkata, Bengaluru, Pune and Chennai.
Across these seven cities, three regions that have witnessed the highest growth in residential rental value are from Bengauluru. Thanisandra Main Road and Marathahalli-ORR saw residential rental values go up by 24% each between Q1 2022 and Q1 2023, according to Anarock.
The IT hub's Whitefield area witnessed the second highest growth in rental value at 21%, in the same period.
“When it comes to rental demand and zooming rents, Bengaluru currently stands out among the top seven cities. We anticipate residential rental values in the IT capital's prominent markets to rise further by anywhere between 5-12% in 2023, depending on the location, property, builder-type and other aspects. In housing societies with limited supply but high demand, the rents could easily rise beyond 12%," said Prashant Thakur, senior director and head, research, Anarock.
Besides the prominent localities in Bengaluru, other cities also recorded notable growth in rental value, as the residential rental demand has soared ever since offices and schools reopened following the Covid-19 pandemic.
After these three regions in Bengaluru, Pune's Hinjewadi had the next highest growth in rentals at 19%.
In MMR, the top three regions for rental value growth were Chembur, Ghodbunder Road (Thane) and Mulund, which saw growth of 17%, 14% and 14%, respectively.
The NCR witnessed a rental value growth of up to 15% in Sector 150, Noida, while Chennai witnessed a growth of up to 16% in Pallavaram.
Among the top seven cities, Bengaluru has the highest rental yield at 4.1% as of Q1 2023-end, followed by Mumbai with 3.9%. Residential rental yield is the annual rate of return an investor can earn from capital invested in a property.
The national average had been 3% before the pandemic. Rental yield in Bengaluru pre-Covid was 3.6%—the highest at the time as well.