IT hubs drive up to 31 per cent housing rental values growth across top 7 cities

Mumbai (Maharashtra) [India], November 9 : Residential rentals in India's top cities, especially IT hubs like Bengaluru, Hyderabad, and Pune, have witnessed an impressive surge, according to the latest data from ANAROCK Research.
The first nine months of 2023 showcased remarkable growth, with prominent areas experiencing rental spikes of over 30 per cent.
In Bengaluru, particularly in IT hotspots like Whitefield and Sarjapur Road, standard 2BHK flats of approximately 1,000 sq. ft. witnessed staggering rental growth. Whitefield recorded an outstanding 31 per cent increase, while Sarjapur Road followed closely with a 27 per cent rise in rents during the same period.
For a standard 2BHK home of 1,000 sq. ft. in Whitefield, average monthly rents surged from Rs 24,600 by the end of 2022 to Rs 28,500 by September 2023.
Similarly, at Sarjapur Road, rents increased from Rs 24,000 to Rs 30,500 during the same timeframe.
Hyderabad emerged as the second-best performer in rental value growth, with key areas like Gachibowli and HITECH City witnessing up to 24 per cent and 16 per cent growth, respectively, in the first nine months of 2023.
In HITECH City, average rents increased from Rs 24,600 by the end of 2022 to Rs 28,500 by September 2023, reflecting a significant 16 per cent growth.
Gachibowli experienced a robust 24 per cent increase, with rents rising from Rs 23,400 to Rs 29,000 in the same period.
Pune joined the rental growth trajectory, with its Wagholi and Hinjewadi micro-markets showcasing notable increases. Wagholi witnessed an 18 per cent average monthly rental growth, while Hinjewadi recorded a 17 per cent rise in the first nine months of 2023.
Anuj Puri, Chairman of ANAROCK Group, highlighted the resilient comeback of residential rents, especially in the post-pandemic era.
Puri said, "After an almost terminal downturn during the first and second Covid-19 waves, residential rents are one of the most remarkable comeback stories of the post-pandemic housing sector. The first nine months of 2023 saw housing rents soar by over 30 per cent in the top 7 cities".
"Bengaluru, already in the limelight for its astronomic rental values post-COVID-19, continues to stand out among the top 7 cities. The fact that the next two hotspots for rental values growth are also IT/ITeS-centric cities also underscores the fundamental strength of the Indian Infotech sector, despite belt-tightening moves in the industry", said Puri.
Puri added, "However, we may now see rental values begin to stabilize in most cities in the ongoing quarter as renting usually remains low in the last quarter of the year. Rents will once again build up steam when renting picks in the January to March period. This is when Indians usually relocate for better job opportunities amid increased hiring in the new financial year."
Bengaluru remains at the forefront, emphasizing the strength of the Indian Infotech sector.
Puri anticipates a stabilization of rental values in the ongoing quarter, with potential surges expected in the first quarter of the new financial year as job relocations typically peak during this period.