Housing rents increase whopping 30% in major IT centres
Housing rents are witnessing a rise in the major IT centres as more employees return to cities with work from home coming to an end.
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Bengaluru, 11 November Housing rents are witnessing a rise in the major IT centres as more employees return to cities with work from home coming to an end.
According to real estate consultancy firm ANAROCK, residential rents have posted an impressive 30 per cent surge in the first nine months of 2023. This increase has been seen in the top seven cities led by Bengaluru, Hyderabad and Pune.
Bengaluru led the show with a whopping 31 per cent surge in housing rents. Notably, Whitefield, a prominent area, saw a surge of 31 per cent, while Sarjapur Road experienced a 27 per cent hike in rents for standard 2BHK flats of around 1,000 sq ft.
Average monthly rent for a standard 2BHK home of 1,000 sq. ft. at Whitefield increased from Rs 24,600 per month by 2022-end to Rs 28,500 per month by September-end 2023. At Sarjapur Road, average monthly rents increased from Rs 24,000 per month in 2022-end to Rs 30,500 per month in September 2023.
Hyderabad witnessed the second best rental value growth with key markets in the city seeing up to 24 per cent growth in this period against all prominent localities in the top seven cities of India.
In HITECH City, the average rents stood at Rs 24,600 per month by 2022-end; by the end of Q3 2023, they were Rs 28,500/month - a 16 per cent growth in the nine-months period. Gachibowli saw rents zoom up by 24 per cent in the same period – from Rs 23,400/month by 2022-end to Rs 29,000/month by September-end this year.
The third prominent city to see good rental values growth was Pune, where the Hinjewadi micro-market recorded a rental value growth of 17 per cent in the last nine months.
“After an almost terminal downturn during the first and second Covid-19 waves, residential rents are one of the most remarkable comeback stories of the post-pandemic housing sector. The first nine months of 2023 saw housing rents soar by over 30 per cent in the top 7 cities. Bengaluru, already in the limelight for its astronomic rental values post-Covid-19, continues to stand out among the top 7 cities. The fact that the next two hotspots for rental values growth are also IT/ITeS-centric cities also underscores the fundamental strength of the Indian Infotech sector, despite belt-tightening moves in the industry,”Anuj Puri, Chairman of ANAROCK Group said.
