Bengaluru, Hyderabad, Pune Witness Significant Rental Surges in 2023

Hyderabad: In the initial three quarters of the calendar year 2023, Bengaluru, Hyderabad, and Pune experienced substantial spikes in rental rates, with Bengaluru witnessing the most significant increases, as reported by consultancy firm Anarock.

According to the latest findings, residential rentals in key areas of Bengaluru shot up by more than 30% during this period. For instance, in Whitefield, a popular locality, the rents for a standard 2BHK flat covering approximately 1,000 sq. ft. surged by 31% in the first nine months of 2023. Sarjapur Road followed closely, experiencing a 27% rise in rents for similar homes during the same period.

To provide a tangible perspective, the average monthly rent for a standard 2BHK home of 1,000 sq. ft. in Whitefield increased from Rs 24,600 at the end of 2022 to Rs 28,500 by September 2023. Similarly, on Sarjapur Road, average monthly rents rose from Rs 24,000 at the close of 2022 to Rs 30,500 by September 2023.

Hyderabad also witnessed a substantial rental hike, with growth reaching up to 24%, particularly noticeable in areas like Gachibowli. Monthly rents in Gachibowli escalated from Rs 23,400 at the end of 2022 to Rs 29,000 by September 2023. In Pune, the rental value growth was slightly lower at 17%, with average rents increasing from Rs 21,000 at the end of 2022 to Rs 24,500 by September 2023.

In contrast, other major cities such as Delhi NCR, Mumbai, Chennai, and Kolkata experienced more modest rental growth ranging between 9% and 14%. Anuj Puri, chairman of Anarock Group, anticipates that rental values may stabilize in most cities in the current quarter, as rental activity typically remains subdued in the last quarter of the year. However, Puri predicts that rents are likely to pick up again in the January to March period, driven by the traditional trend of increased job-related relocations during this time.