Housing rents continue to soar across the top seven Indian cities, led by leading IT and ITeS hubs Bengaluru, Hyderabad, and Pune, the latest industry report said.
Residential rentals in Bengaluru’s prominent areas soared by over 30% in the first nine months of 2023, according to the latest Anarock Research data.
A standard 2BHK flat of approx. 1,000 sq. ft. area in Bengaluru’s Whitefield saw rents grow by 31%, followed by Sarjapur Road where rents for such homes rose by 27% in the first nine months of this year, the report said.
Hyderabad, another leading IT hub in India, witnessed the second-highest rental hike, with key markets in the city seeing up to 24% growth in this period.
“After an almost terminal downturn during the first and second Covid-19 waves, residential rents are one of the most remarkable comeback stories of the post-pandemic housing sector,” Anuj Puri, Chairman, Anarock Group, said.
“The fact that the top hotspots for rental value growth are also IT/ITeS-centric cities also underscores the fundamental strength of the Indian infotech sector, despite belt-tightening moves in the industry,” he added.
Puri, however, said rentals may begin to stabilise in most Indian cities in the ongoing quarter as renting usually remains low in the last quarter of the year.
The rising rental costs also led to inching up of residential rental yields – the annual ROI from capital invested in a property – in the South Asian country, bringing investors back to the housing market.
The national average of 3% in rental yields for the last few years is now estimated to have gone up to 3.6% in some cities such as Bengaluru.
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