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According to Anarock, rent growth has slowed in seven major Indian cities. In Q2 2024, rents for a typical 1,000 sq. ft two-bedroom apartment increased by just 2-4% compared to 4-9% in Q1. This deceleration is attributed to a surge in new housing supply, with over 531,000 units expected in 2024, a 22% increase from 2023. Notably, Noida's rent rose only 4%, Mumbai's Chembur and Mulund saw a 2% increase, and Hyderabad's HITECH City and Gachibowli experienced a 3% rise. Bengaluru's Whitefield saw rents rise to INR 35,000 per month. Renters may benefit from this slowed growth and increased supply.
While renting an apartment can be a significant expense, renters in some major Indian cities may be getting a bit of a break. According to a report by real estate consultant Anarock, rent growth has slowed down in seven major cities compared to earlier this year. Advertisement
Anarock studied rental prices in Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Pune, Hyderabad, and Bengaluru. Their data shows that rents for a typical two-bedroom, 1,000 square foot apartment have risen modestly, between 2% and 4%, in the second quarter of 2024 (April to June) compared to the first quarter (January to March). This is a significant change from the previous quarter, where rents had risen by 4% to 9%.
Experts say the slowdown in rent growth is likely due to an increase in the supply of new housing units. Anarock predicts that the top seven cities will deliver over 531,000 new housing units in 2024, a 22% increase compared to last year (delivering 435,000 units in 2023). This additional supply is helping to meet the growing demand for rentals, preventing rents from skyrocketing.
The report also highlights some cities that have seen particularly slow rent growth. Noida, for example, saw rents rise by only 4% in the second quarter, compared to 9% in the previous quarter. Similarly, key areas in Mumbai like Chembur and Mulund only saw a 2% increase, while Hyderabad's IT hubs HITECH City and Gachibowli experienced a 3% rise. Bengaluru's Whitefield area, however, did see a 4% increase in rents, reaching INR 35,000 per month for a standard 1,000 square foot apartment.
For renters in these major cities, this news could be a welcome sign. The slowdown in rent growth, especially compared to the earlier growth of 4-9%, may provide some relief, especially for those on tight budgets. It's important to note that these are averages, and rental prices can vary depending on location, size, amenities, and even specific projects. However, the overall trend suggests that renters may have a bit more negotiating power in the current market, particularly in cities with a significant increase in new housing supply.
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