The average rent for a standard two-bedroom house spanning 1,000 square feet in seven major Indian cities has surged by up to 64% since 2019, according to a report released by real estate consultancy Anarock.
In Sector 150, Noida, within the National Capital Region (NCR), rents increased by 63.3% to US$ 299.75 (Rs. 25,000) in the second quarter of FY24 from US$ 185.85 (Rs. 15,500) in FY19. Dwarka, southwestern Delhi, saw rents rise by 43.5% to US$ 335.74 (Rs. 28,000) from US$ 233.82 (Rs. 19,500).
Chembur in the Mumbai Metropolitan Region recorded the highest average rent for a two-bedroom home at US$ 761.40 (Rs. 63,500), a 41.1% increase from US$ 539.58 (Rs. 45,000) in 2019. Mulund, a suburb in northwest Mumbai, saw an average rent increase of 28.7% to US$ 595.93 (Rs. 49,700) from US$ 462.84 (Rs. 38,600) in 2019, while Bengaluru’s Sarjapur Road experienced a rise to US$ 419.67 (Rs. 35,000) from US$ 251.80 (Rs. 21,000) in 2019.
The report noted a deceleration in rent growth, with residential rentals in key micro-markets of top cities increasing by 2-4% in the second quarter of FY24, compared to 4-9% in the first quarter. For instance, Noida’s Sector 150 saw a 4% rent increase in the second quarter, down from 9% in the first quarter.
Sohna Road in Gurgaon and Dwarka in Delhi saw rents rise by 3% and 2% in the second quarter, following 4% and 6% increases in the first quarter. Chembur and Mulund experienced average rent increases of 2% in the second quarter compared to the first quarter.
Meanwhile, rents in Hyderabad’s HITECH City and Gachibowli increased by 3% in the second quarter, down from a 5% increase in the first quarter. According to Vice-Chairman of Anarock Group, Mr. Santhosh Kumar, “This year, declining rental value growth coincides with substantial new housing supply entering these markets.”
India’s seven largest cities are expected to deliver 531,470 new units in 2024, a 22% increase from the 435,045 units delivered in 2023, with the Mumbai Metropolitan Region leading with 160,900 new units, followed by 144,315 in NCR and 97,000 in Pune.
