Residential rental markets across the top 7 cities increased after offices and schools reopened in 2022. Analysis of the average monthly rental trends across the leading luxury localities in the top 7 cities reveals that most markets have saw double-digit growth in the last two years, with only a few exceptions.
As per latest Anarock data, the average monthly rentals in the prominent luxury micro-markets across the top 7 cities increased anywhere between 8-18% in the last two years.
This was followed by Bengaluru’s Rajaji Nagar, which witnessed a 16% jump in the same period – from Rs 56,000 in 2020 to Rs 65,000 in 2022.
Anuj Puri, chairman – Anarock Group, says, “Pent-up rental demand hitting the market has caused a demand-supply mismatch in many areas, resulting in monthly rental hikes. Also, post-Covid tenant preference has tilted towards large-size homes.”
“Most prominent luxury housing markets witnessed double-digit growth in rentals in the last two years,” says Puri. “Pre-Covid, average 2-year luxury rental increases at a given time were largely single-digit, between 5-7%.”
The luxury residential market has been on an upswing post the pandemic, with its overall sales share growing to about 14% in H1 2022. Even demand for rental luxury properties is on a high, resulting in growth in average monthly rentals.
Some of the prominent luxury markets in the top 7 cities that performed well in 2022 and may see further short to mid-term boosts:
*Bengaluru – the luxury residential hotspot JP Nagar saw average monthly rentals appreciate by 13% in 2022 over 2020, while capital prices in this period rose by 9%. Likewise, Rajajinagar saw rental prices rise by 16%, and capital prices by 5%.
*MMR – luxury rentals in Tardeo rose 15% in this period, while capital prices increased by only 3%. Similarly, in Worli, the average monthly rentals for a minimum 2,000 sq. ft. area home increased by 18%, while capital prices saw a mere 2% jump.
*NCR – rentals in luxury hotspot Golf Course Road increased by 11%, while capital prices saw a mere 3% rise. Likewise, Golf Course Extension Road saw rentals increase by 12% and capital prices by 5% in this period.
*Chennai – luxury rentals in Anna Nagar rose 13% in this period, while capital prices increased by 5%. Similarly, in Kotturpuram, the average monthly rentals rose by 14% while capital prices rose by 4%.
*Hyderabad – the luxury residential hotspot Jubilee Hills saw average monthly rentals appreciate by 15% in 2022 over 2020, while capital prices in this period rose 6%. HITECH City saw a rental price rise of 11%, while capital prices increased by 7%.
*Pune – the rentals in Koregaon Park rose 14% in this period, while capital prices increased by 4%. In Prabhat Road, the average monthly rentals rose by 8% while capital prices rose by just 3%.
*Kolkata – luxury home rentals in Alipore rose 8% in 2022 against 2020, while capital prices increased by 4%. Similarly, in Ballygunge, the average monthly rentals rose 10% while capital prices rose by 3%.
