IT Hubs Witness 31 Per Cent Housing Rental Values Growth Among Top 7 Indian Cities
A standard 2BHK flat of 1,000 sqft. area in Bengaluru’s Whitefield saw rents grow by 31 per cent in 9M 2023, followed by Sarjapur Road where rents for such homes rose by 27 per cent in this period
Housing rents continue to soar across the top 7 cities in India, led by leading IT/ITeS hubs Bengaluru, Hyderabad, and Pune. According to latest ANAROCK Research data, among the top Indian 7 cities, residential rentals in Bengaluru’s prominent areas soared by over 30 per cent in the first nine months of 2023 (9M 2023).
A standard 2BHK flat of about 1,000 sq.ft. area in Bengaluru's Whitefield saw rents grow by 31 per cent in 9M 2023, followed by Sarjapur Road where rents for such homes rose by 27 per cent in this period.
In hard numbers, average monthly rent for a standard 2BHK home of 1,000 sq.ft. at Whitefield increased from Rs 24,600 per month by 2022-end to Rs 28,500 a month by September-end 2023. At Sarjapur Road, average monthly rents increased from Rs 24,000 a month in 2022-end to Rs 30,500 per month in September 2023.
Interestingly, the next two rental growth hotspots are also IT/ITeS hubs. Hyderabad witnessed the 2nd-best rental value growth with key markets in the city seeing up to 24 per cent growth in this period against all prominent localities in the top 7 cities of India.
In HITECH City, the average rents stood at Rs 24,600 a month by 2022-end; by the end of Q3 2023, they were Rs 28,500 a month, a 16 per cent growth in the nine-month period. Gachibowli saw rents zoom up by 24 per cent in the same period, from Rs 23,400 per month by 2022-end to Rs 29,000 per month by September-end this year.
The third prominent city to see good rental values growth was Pune, where the Hinjewadi micro-market recorded a rental value growth of 17 per cent in the last nine months. Here, the average rents were Rs 21,000 per month by 2022-end and Rs 24,500 per month by September-end 2023.
Anuj Puri, chairman at ANAROCK Group, said, “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. The first nine months of 2023 saw housing rents soar by over 30% in the top 7 cities. Bengaluru, already in the limelight for its astronomic rental values post-Covid-19, continues to stand out among the top 7 cities. The fact that the next two hotspots for rental values growth are also IT/ITeS-centric cities also underscores the fundamental strength of the Indian Infotech sector, despite belt-tightening moves in the industry.”
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