North and east Bengaluru have witnessed maximum appreciation of up to 24 percent in average monthly rent for a 1,000-square-feet two-bedroom apartment in the last one year among seven major cities, according to property consultant Anarock.
In its report released on Thursday, real estate consultant Anarock said that Thanisandra Main Road and Marathahalli-ORR in Bengaluru recorded the highest residential rental growth of 24 percent each year-on-year in the January-March period for a standard 2BHK home of 1,000 square feet area.
Whitefield and Sarajpur in Bengaluru were at second and third positions with 21 percent and 20 percent growth, respectively, in rental between January-March 2022 and January-March 2023.
The consultant said that areas in east and north Bengaluru have seen a spurt in rental demand.
Bengaluru currently has the highest rental yield of 4.1 percent among all major cities, followed by Mumbai with 3.9 percent.
Prashant Thakur, Sr Director & Head – Research, Anarock Group, said, "When it comes to rental demand and zooming rents, Bengaluru currently stands out among the top 7 cities, with east and north Bengaluru the biggest blips on the rental radar map owing to the IT/ITeS belt there." Abhishek Tripathi, co-founder, Settl, said: "In a place like Bangalore during the pandemic, huge capital was deployed into hiring talent, especially in the IT sector and startups. During the same time, due to labour shortage, the increase in building supply was restricted and when the lockdown restrictions were removed and offices started to open up, people started moving to tier-I cities and settling down." "This disparity has created a housing crisis, especially in tier 1 cities in Bangalore. Hence, the increase in rent is a result of these multifarious factors," Tripathi said.
As per the report, average monthly rentals for a standard 2BHK home of 1,000 sq ft at Thanisandra Main Road increased from Rs 21,000 per month in Q1 (January-March) 2022 to Rs 26,000/month in Q1, 2023.
At Marathahalli-ORR, average monthly rentals increased from Rs 22,500/month last year to Rs 28,000/month in Q1 2023.
The data showed that Pune's three standout markets with high rental growth between Q1 2022 and Q1 2023 are Hinjewadi, Baner, and Wagholi, which witnessed rental value growth of 19 percent, 15 percent, and 13 percent, respectively.
In Chennai, the top 3 markets to witness high rental values growth are Pallavaram, Perambur, and Oragadam, with rents in this period growing by 16 percent, 10 percent, and 11 percent, respectively.
In NCR, the top three markets were Sohna Road in Gurugram (rental values increased by 13 percent), Sector-150 in Noida (15 percent growth), and Dwarka in Delhi with a rental value growth of 10 percent.
In MMR, the top three markets for rental value growth were Chembur, Ghodbunder Road (Thane), and Mulund, which saw 17 percent, 14 percent, and 14 percent growth, respectively.
Kolkata's top three markets with high rental value growth between Q1 2022 and Q1 2023 were EM Bypass, Joka, and Rajarhat, where rents rose by 13 percent, 11 percent, and 10 percent, respectively.
In Hyderabad, the top three markets were HITECH City and Kondapur, which saw rental values increase by 12 percent each, and Gachibowli with 11 percent growth.
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