- Thanisandra Primary Rd & Marathahalli-ORR in Bengaluru document highest residential rental development of 24% every on yearly foundation in Q1 2023 (for the standard 2BHK residence of 1,000 sq. ft. space)
- Whitefield (Bengaluru) data 2nd greatest rental charge bounce in opposition to different outstanding areas of prime 7 cities, sees 21% development
- Bengaluru’s Sarjapur Highway comes subsequent with 20% in avg. month-to-month hire development b/w Q1 2022 & Q1 2023
- Largely, areas in East & North Bengaluru have seen a spurt in rental demand
- At 4.1%, Bengaluru at the moment has the very best rental yield as of Q1 2023-end amongst all main cities, adopted by Mumbai with 3.9%
- Housing rents in outstanding markets in Bengaluru might rise additional by between 5-12% in remaining 3 quarters of 2023
Mumbai, 20 April 2023: Residential rental demand has soared in most cities ever since places of work and colleges reopened after the third Covid-19 wave in 2022, particularly prior to now one yr and notably within the nation’s IT/ITeS capital Bengaluru – which has seen skyrocketing rental values. ANAROCK’s evaluation of month-to-month housing rents throughout outstanding areas of the highest 7 cities finds that Bengaluru’s ThanisandraMain Highway and Marathahalli-ORR noticed residential rental values zoom up by 24% every between Q1 2022 and Q1 2023.
Common month-to-month leases for the standard 2BHK residence of 1,000 sq. ft. at Thanisandra Primary Highway elevated from INR 21,000/month in Q1 2022 to INR 26,000/month in 2023. At Marathahalli-ORR, common month-to-month leases elevated from INR 22,500/month final yr to INR 28,000/month in Q1 2023.
Curiously, the following two hotspots have been additionally in Bengaluru. Whitefield – one other outstanding IT/ITeSdestination – witnessed the 2nd-best rental worth development of 21% on this interval, in opposition to all outstanding localities within the prime 7 cities of India.
In Whitefield, the common rents stood at INR 21,900/month in Q1 2022 and in Q1 2023, had reached INR 26,500/month.
The third spot was occupied by Bengaluru’s Sarjapur Highway, which recorded rental worth development of 20% between first quarter of 2022 and 2023. Right here, the common leases have been INR 22,500/month in Q1 2022 and INR 27,000/month in Q1 2023.
Prashant Thakur, Sr. Director & Head – Analysis, ANAROCK Group, says, “Relating to rental demand and zooming rents, Bengaluru at the moment stands out among the many prime 7 cities, with East and North Bengaluru the most important blips on the rental radar map owing to the IT/ITeS belt there. Whitefield, Sarjapur Highway, Marathahalli-Bellandur Outer Ring Highway, Thanisandra Primary Highway and even Hebbal are the clear chartbusters.”
“We anticipate residential rental values within the IT capital’s outstanding markets to rise additional by anyplace between 5-12% in 2023, relying on the placement, property, builder-type and different features,” says Thakur. “In housing societies with restricted provide however excessive demand, the rents may simply rise past 12%.”
| Avg. Month-to-month Housing Rents for normal 2BHK of 1,000 Sq. ft. residence (INR/Month) | ||||
| Cities | Micro Markets | Q1 2022 | Q1 2023 | % Change (Q1 2022 vs Q1 2023) |
| Hyderabad | HITECH Metropolis | 24,000 | 26,800 | 12% |
| Gachibowli | 23,000 | 25,600 | 11% | |
| Kondapur | 21,500 | 24,000 | 12% | |
| NCR | Sohna Highway | 26,000 | 29,500 | 13% |
| Sector-150 (Noida) | 16,500 | 19,000 | 15% | |
| Dwarka | 20,000 | 22,000 | 10% | |
| MMR | Chembur | 49,500 | 58,000 | 17% |
| Mulund | 40,000 | 45,400 | 14% | |
| Ghodbunder street – Thane | 28,000 | 32,000 | 14% | |
| Kolkata | EM Bypass | 19,500 | 22,000 | 13% |
| Rajarhat | 15,000 | 16,500 | 10% | |
| Joka | 13,500 | 15,000 | 11% | |
| Bengaluru | Sarjapur Rd (excluding Sarjapur Village) | 22,500 | 27,000 | 20% |
| Marathahalli-ORR | 22,500 | 28,000 | 24% | |
| Whitefield | 21,900 | 26,500 | 21% | |
| Thanisandra Primary Rd | 21,000 | 26,000 | 24% | |
| Pune | Hinjewadi | 18,500 | 22,000 | 19% |
| Wagholi | 15,000 | 17,000 | 13% | |
| Baner | 20,000 | 23,000 | 15% | |
| Chennai | Perambur | 16,800 | 18,500 | 10% |
| Pallavaram | 15,500 | 18,000 | 16% | |
| Oragadam | 12,200 | 13,500 | 11% | |
Supply: ANAROCK Analysis
High Housing Rents Markets – Metropolis-wise
Apart from the outstanding localities in Bengaluru, different cities additionally recorded notable rental values development:
- Pune’s three standout markets with excessive rental development between Q1 2022 and Q1 2023 are Hinjewadi, Baner and Wagholi, which witnessed rental worth development of 19%, 15% and 13%, respectively
- In Chennai, the highest 3 markets to witness excessive rental values development are Pallavaram, Peramburand Oragadam, with rents on this interval rising by 16%, 10% and 11% respectively
- In NCR, the highest 3 markets have been Sohna Highway in Gurugram (rental values elevated by 13%), Sector-150 in Noida (15% development) and Dwarka in Delhi with a rental worth development of 10%
- In MMR, the highest 3 markets for rental worth development have been Chembur, Ghodbunder Highway (Thane) and Mulund, which noticed 17%, 14% and 14% development, respectively
- Kolkata’s prime 3 markets with excessive rental worth development between Q1 2022 and Q1 2023 have been EM Bypass, Joka and Rajarhat, the place housing rents rose by 13%, 11% and 10%, respectively
- In Hyderabad, the highest 3 markets have been HITECH Metropolis and Kondapur, which noticed rental values improve by 12% every, and Gachibowli with 11% development
Rental Yields
Residential rental yield (the annual charge of return an investor can earn from capital invested in a property) had for lengthy stagnated in India. The nationwide common stood at 3% for the previous couple of years pre-pandemic. Nonetheless, issues started to vary with rental demand spiking up put up the pandemic in 2022. Among the many prime 7 cities, Bengaluru has the very best rental yield of 4.1% as of Q1 2023-end, adopted by Mumbai with 3.9%. Pre-Covid, the rental yield in Bengaluru was at 3.6% – the very best again then, as properly.
(Be aware: High 3 areas with excessive rental demand from every of the highest 7 cities have been thought of)
See Additionally:
- 45% Property Seekers in NCR and 32% in MMR Want to Purchase 3BHKs
- Godrej Properties Makes Daring Transfer with Acquisition of 18 Land Parcels for Future Improvement Initiatives
- Q1 2023-end Housing Stock Down to twenty Months from 42 Months in 2018
- Housing Gross sales Breach 1 Lakh Mark in Q1 2023 Amid Excessive-end Properties Demand Enhance
