Housing rents have surged by a substantial 25 per cent in Hyderabad since 2019. Housing.com released a report on Wednesday titled ‘Residential Rents on the Rise!’ on rental property in India, which shows the average rent growth has been higher than the appreciation in capital values.
The average monthly rents for residential properties have increased by around 15 to 20 per cent across Hyderabad, Mumbai, New Delhi, Noida, Gurugram, Pune and Bengaluru cities compared to the pre-pandemic era of 2019. Average monthly asking rents increased by 25 to 30 per cent, and some cities witnessed significant rent spikes exceeding 30 per cent during the same period.
Housing.com CEO Dhruv Agarwala said, “Post-pandemic, there has been a sharp revival in housing demand, both for buying and renting purposes. Housing market has seen price appreciation in the last two years after almost a decade of stagnation. The average price rise has been modest at a city level, but there has been a sharp rise in some major locations of top cities.”
Housing rents increased by 25% in city
Head of Research at Housing.com Ankita Sood, said, “Rental returns in India historically trailed global counterparts due to factors like higher interest rates and acquisition costs. However, post-pandemic dynamics, including rising property values, affordability challenges for potential buyers and a limited supply of ready inventory, has sparked a significant surge in rental demand. We see notable spikes to the tune of 25 to 30 per cent in CBDs of service sector dominant cities like Gurugram, Bengaluru, Pune and Hyderabad.
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