The housing market in Bengaluru has witnessed a substantial surge in rental rates, experiencing the highest growth in the last nine months, according to a recent report by Anarock Property Consultants. The surge is particularly evident in prime areas like Whitefield and Sarjapur Road, reflecting a changing trend in the city’s real estate dynamics.
Between January and September this year, Bengaluru’s residential rents skyrocketed by up to 31%, with a noteworthy increase in the rental prices of a standard 2BHK flat spanning around 1,000 sqft in Whitefield and Sarjapur Road. The surge is part of a larger trend seen in other major cities like Hyderabad, Pune, Delhi, and Mumbai.
Bengaluru Highlights:
- Whitefield: Monthly rent for a 2BHK surged from ₹24,600 to ₹28,500 (2022-end to September 2023).
- Sarjapur Road: Monthly rents rose from ₹24,000 to ₹30,500 during the same period.
Other City Highlights:
- Hyderabad: Experienced a 24% growth, with Gachibowli seeing a 24% rise.
- Pune (Hinjewadi): Notable growth of 17% in rental values.
- Delhi-NCR: Sohna Road in Gurugram, Sector-150 in Noida, and Dwarka in Delhi witnessed growth of 11%, 13%, and 14%, respectively.
- Mumbai: Chembur and Mulund emerged as top markets with 14% and 9% rental value rise.
- Chennai: Pallavaram and Perambur experienced a growth of 12% and 9%, respectively.
- Kolkata: EM Bypass and Rajarhat emerged as top markets with a 14% and 9% rental value growth in nine months.
Anarock’s report indicates a noteworthy shift in investor sentiment. While the annual Return on Investment (ROI) from property was historically unattractive, increased rental demand post-Covid-19 has led to a resurgence of investor interest.
According to Anuj Puri, Chairman of the ANAROCK Group, housing rents in the top 7 cities have surged by over 30% in the first nine months of 2023. Bengaluru currently leads the pack with the highest rental yield of 4.35%, followed closely by Mumbai at 4.05%.
Looking forward, Puri anticipates a continued upswing in rents in the coming months. He predicts a resurgence in the January to March period as job opportunities increase during the new financial year, prompting relocation and increased rental demand.
