Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
ANAROCK Research shows the rental values in the key micro-markets across India's top 7 cities rose by up to 72% from the end of 2021 to the first half of 2024. Bengaluru, Pune, Kolkata, and Chennai saw the rental values increase more than capital values, while NCR, MMR, and Hyderabad experienced the opposite trend. Cities like Bengaluru's Sarjapur Road and Pune's Hinjewadi showed significant rental growth. Capital appreciation was higher in Noida and Hyderabad's HITECH City. Factors like job prospects, financial status, and lifestyle preferences influence rent vs. buy decisions. Homeownership is favoured due to low-interest rates and post-pandemic security concerns, with EMIs seen as investments.
According to ANAROCK Research, rental values in key micro-markets across India's top 7 cities increased by up to 72% between the end of 2021 and the first half of 2024, outpacing capital value growth in several regions. Cities such as Bengaluru, Pune, Kolkata, and Chennai experienced greater growth in rental values than in capital values, reflecting the growing demand for rental housing in these urban centres. Conversely, in regions like NCR, MMR, and Hyderabad, capital appreciation surpassed rental growth. Advertisement
In Bengaluru, notable micro-markets like Sarjapur Road and Thannisandra Main Road saw rental value increases of 67% and 56%, respectively, while capital values rose by 54% and 52%. Pune's Hinjewadi and Wagholi exhibited similar trends, with rental values appreciating by 52% and 60%, compared to capital growth of 31% and 30%. Kolkata's EM Bypass saw a rental increase of 46% versus a capital rise of just 15%, and in Rajarhat, rental values grew by 30%, while capital values increased by 23%. Chennai's Pallavaram and Perambur also saw rental values grow faster than capital appreciation, with Pallavaram recording a rental growth of 40% against a capital rise of 18%, and Perambur showing 33% rental growth compared to 18% in capital appreciation.
However, in regions like NCR, MMR, and Hyderabad, capital values grew more than rental values. In NCR's Sohna Road, capital values appreciated by 54% compared to a 40% rise in rental values, while Noida's Sector-150 saw capital growth of 127%, far outpacing the 56% rise in rental values. MMR's micro-markets like Chembur and Mulund experienced similar trends, with capital values rising 39% and 36%, compared to rental growth of 38% and 26%, respectively. In Hyderabad, HITECH City saw capital appreciation of 59%, while rental values grew by 46%, and Gachibowli experienced capital growth of 70%, compared to 50% in rental values.
While rental and capital value trends offer valuable insights, they are only part of the equation when deciding between renting and buying a home. Factors such as financial stability, job prospects, family size, and personal preferences play crucial roles. For instance, someone paying INR 50,000 in monthly rent for a 2 BHK in Bengaluru might face a dilemma about purchasing the property, particularly when home loans are available at relatively low interest rates of 8.75% to 9.5%. A stable job and the ability to make a 20% down payment might make buying a more financially prudent option, as monthly EMIs can contribute toward owning a non-volatile asset. This trend toward homeownership, reinforced by the COVID-19 pandemic, underscores the desire for financial security and stability.
The ANAROCK Research findings indicate a significant increase in rental values across India's major cities, highlighting a growing demand for rental housing in places like Bengaluru, Pune, Kolkata, and Chennai. In contrast, regions such as NCR, MMR, and Hyderabad saw capital values rise faster than rentals. While these trends provide insights into the housing market, individual circumstances, including financial stability and personal preferences, ultimately guide decisions between renting and buying. The desire for homeownership, particularly post-COVID-19, reflects a broader quest for financial security.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
