According to property consultancy Anarock, the upward trend in house rents in major Indian cities is expected to persist in 2023, due to continued high demand. Over the period from 2019 to 2022, the average rent experienced a significant increase of 23% in major Indian cities. This rise in demand is largely attributed to the re-opening of offices following the extended hiatus caused by the Covid-19 pandemic.
According to Anarock, a property consultancy, house rents in India’s major cities are expected to continue their upward trend in 2023 due to increasing demand. Over the past three years, the average rent in these cities has risen 23% as more companies are bringing employees back to the office, including in a hybrid mode. Anuj Puri, Chairman of the Anarock Group, mentioned that the rental market was thought to be struggling in 2020, but it has since rebounded with the return of employees to the office.
According to Anarock, the significant increase in rents in major Indian cities is due to the re-opening of offices after a long pause caused by the Covid-19 pandemic. The chairman of the Anarock Group, Anuj Puri, stated that the rental demand in the top seven cities has been increasing as companies call back their employees to the office, even in hybrid mode. The biggest jump in the rent was seen in Noida Sector 150, where the monthly rent for a 1,000 sq ft apartment increased from Rs 15,500 in 2019 to Rs 19,000 in 2023, a rise of 23 percent. This was followed by rent hikes of 21 and 20 percent in Wagholi and Hinjewadi in Pune, respectively.
According to Anarock, a property consultancy, house rents in India’s major cities will continue to rise in 2023 due to the increasing demand. Over the period of 2019 to 2022, the average rent increased by 23% in major Indian cities, largely due to the re-opening of offices post the COVID-19 pandemic. The chairman of Anarock Group, Anuj Puri, stated that with the return of employees to the office, rental demand has risen across the top seven cities after declining during the worst waves of the pandemic. Some of the areas that have seen the largest increase in rent include Noida Sector 150, Wagholi and Hinjewadi in Pune, Pallavaram in Chennai, EM Bypass in Kolkata, Whitefield in Bengaluru, and Dwarka and Sohna roads in NCR. Puri stated that the high demand for rental homes is likely to continue this year as well, as the overall cost of property acquisition is rising with increasing property prices and interest rates, leading to deferred property purchase decisions.
The National Capital Region’s (NCR) Golf Course Extension has seen the largest growth in rental prices for luxury homes. The prices increased by 18% from INR 49,000 per month in 2019 to INR 58,000 per month in 2022 for homes with an area of 2,000 sq ft. Jubilee Hills in Hyderabad was the runner-up, with a 17% increase in rental prices from INR 54,000 per month in 2019 to INR 63,000 per month in 2022.
In other cities, rental prices have also increased. Mumbai’s Worli, Bengaluru’s Rajaji Nagar, and Chennai’s Anna Nagar all saw a 16% growth in rental prices from 2019 to 2022.
It was mentioned that with the upcoming academic session, more parents are expected to search for housing close to schools, which will lead to further increases in rental demand in the coming months.