Delhi To Bengaluru, Massive Dip In Rent Price Growth Across Top 7 Cities, Reveals Report

With more supply hitting the top 7 cities' markets, the report states that over-heated housing rents' growth is stabilising now.
Delhi To Bengaluru, Massive Dip In Rent Prices Across Top 7 Cities
Delhi To Bengaluru, Massive Dip In Rent Prices Across Top 7 Cities

The rental prices' growth in the top seven cities across Indian markets are witnessing a downward trend, as per the latest ANAROCK research. The data shows that average residential rental prices across key markets in these cities saw a 2-4 per cent quarterly increase in the second quarter of 2024 to date over the preceding quarter. The first quarter of this year saw rent prices in the top seven markets grow between 4 to 9 per cent quarterly against the fourth quarter of last year (Q4 2023). For example, average rents for a standard 1,000 sq. ft. 2 BHK in Bengaluru’s Whitefield increased by 4 per cent – from Rs 32,500 per month in Q1 2024 to Rs 35,000 per month in Q2 2024 to date. In Q1 2024, the quarterly jump against Q4 2023 was doubled at 8 per cent.

The top 7 cities are set to deliver approximately 5.31 lakh new units this year while last year, the same cities witnessed approx. 4.35 lakh units hit their markets. By this estimate, we can expect a 22 per cent annual supply increase in 2024 if delivery schedules remain on track, ANAROCK states.

Rent Increase Across Cities:

With more supply hitting the top 7 cities' markets, the report states that over-heated housing rents are stabilising.

Delhi NCR

The average rent price in Noida’s Sector 150 increased by only 4 per cent from approx. Rs 24,000/month (in Q1 2024) to Rs 25,000/month in the Q2 of 2024. This is an increase of Rs 1000 over the last fiscal year.

The quarterly hike stood at 9 per cent in Q1 2024 against Q4 2023.

Sohna Road and Dwarka saw their respective quarterly rents increase by 3 per cent and 2 per cent in Q2 2024; in Q1 2024 the hikes stood at 4 per cent and 6 per cent respectively.

Mumbai

Mumbai Metropolitan Region’s (MMR) key markets - Chembur and Mulund witnessed average rents increase by a mere 2 per cent against the preceding quarter (Q1 2024). In Q1 2024, the rent prices increased by over 4 per cent against the fourth quarter of 2023.

Hyderabad

The HITECH City and Gachibowli areas of Hyderabad witnessed an average rent growth of 3 per cent each in the second quarter of this year to date over the preceding quarter. In Q1 2024, the quarterly average rent increase in both these markets stood at 5 per cent.

Units Completion across cities

Among the top seven cities, MMR is slated to see the highest completions at around 1,60,900 units this year. In 2023, the region witnessed the completion of around 1,43,500 units.

NCR region is expected to see around 1,44,315 units delivered in 2024, against approximately 1,14,280 units in 2023.

Pune may see a completion of around 97,000 in 2024. Last year, around 65,000 units were completed here.

Bengaluru is considered one of the key rental hubs of the country with the highest rental value hikes. It will witness around 51,685 units delivered this year, against around 52,565 units last year.

Hyderabad is slated to see around 34,770 units completed by the end of this year. 2023 witnessed the completion of around 20,500 units.

Kolkata expects to witness around 25,220 units delivered this year. In 2023, around 25,075 units were completed.

Chennai may expect a delivery of around 17,580 units this year, against 14,125 units in 2023.

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