Rents for residential properties in top 7 cities rise 2-4% on better supply
Higher supply of houses on rent has help moderate the rental hike
New Delhi: Average monthly rent for residential properties has risen 2-4 per cent so far this quarter compared with the January-March period across seven major cities, according to Anarock. Real estate consultant Anarock said that the growth in housing rent across the top seven cities — Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Pune, Hyderabad and Bengaluru — has moderated because of improvement in housing supply. The data is based on average rent for a 2-BHK flat of 1,000 square feet.
“Average residential rental prices across key markets in these cities saw a 2-4 per cent quarterly rise in Q2 (April-June) 2024 to date over the preceding quarter. The Q1 2024 saw rents in these markets rise by between 4-9 per cent quarterly against Q4 2023,” the report said.
The average rent for a standard 1,000 square feet 2-BHK apartment in Bengaluru’s Whitefield rose by 4 per cent to Rs 35,000 per month in Q2 2024 to date from Rs 32,500 per month in January-March this year.
However, the rentals rose by 8 per cent during January-March this year compared with the preceding quarter.
“In India, the second quarter of most years typically sees rents increase more than in other quarters due to the commencement of the new academic year and the employment of new staff. This year, declining rental value growth coincides with substantial new housing supply entering these markets,” Santhosh Kumar, Vice Chairman of Anarock, said.
Anarock data shows that the top 7 cities are set to deliver 5.31 lakh new units in 2024 as against 4.35 lakh units in the last year. This denotes a 22 per cent annual supply increase this year if delivery schedules remain on track.
As per the data, the average rents in Noida’s Sector 150 rose by a mere 4 per cent to Rs 25,000 per month in the April-June quarter from Rs 24,000 per month in January-March 2024. The quarterly hike stood at 9 per cent in January-March 2024 as against the October-December period of 2023. Sohna Road and Dwarka saw a 3 per cent and 2 per cent increase in rent, respectively, so far this quarter.
Average housing rent in MMR’s key markets Chembur and Mulund rose by just 2 per cent against the preceding quarter (Q1 2024). In January-March 2024, it rose by over 4 per cent against Q4 2023.
Hyderabad’s HITECH City and Gachibowli saw average rents rising by 3 per cent each in April-June 2024 to date over the preceding quarter. In January-March 2024, the quarterly average rent hike in both these markets was 5 per cent. PTI
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