 "Rents in India have increased by up to 64% in last five years: Report")
The average rent for a standard two-bedroom house spread over 1,000 square feet in seven major cities in India has increased by up to 64 per cent since 2019, said a report on Tuesday.
Rent growth slowed down in the April-June quarter of FY24 when supply increased robustly, according to real estate consultancy Anarock.
The average rent in Sector 150, a micro market of Noida in the National Capital Region (NCR), increased by 63.3 per cent to Rs 25,000 in the second quarter of FY24 from Rs 15,500 in FY19. Dwarka in southwestern Delhi had rent going up by 43.5 per cent to Rs 28,000 from Rs 19,500.
Chembur in the Mumbai Metropolitan Region has the highest average rent for a two-bedroom home: Rs 63,500. From Rs 45,000 in 2019, rent here has increased by 41.1 per cent in the last five years.
Chembur is followed by Mulund, a suburb in northwest Mumbai, where the average rent has increased by 28.7 per cent to Rs 49,700 from Rs 38,600 in 2019. Chembur is followed by Bengaluru's Sarjapur Road, where the average rent is Rs 35,000, up from Rs 21,000 in 2019.
Rent growth slowing
More From This Section
Residential rentals in key micro markets in top cities increased 2-4 per cent in the second quarter of FY24. In the first quarter, rental growth was between 4-9 per cent.
Average rent in Noida's Sector-150 increased by 4 per cent in the second quarter of 2024 compared to 9 per cent in the first quarter. Sohna Road in Gurgaon and Dwarka in Delhi saw rents increase by 3 per cent and 2 per cent in the second quarter of 2024. In the first quarter, rents increased by 4 per cent and 6 per cent.
Chembur and Mulund saw average rents increased by 2 per cent in the second quarter compared to the first quarter.
Average rents in Hyderabad's HITECH City and Gachibowli increased by 3 per cent in the second quarter. In the first quarter of 2024, the average rent increased by 5 per cent in both places.
"In India, the second quarter of most years typically sees rents increase more than in other quarters due to the commencement of the new academic year and the employment of new staff," said Santhosh Kumar, vice-chairman of Anarock Group. "This year, declining rental value growth coincides with substantial new housing supply entering these markets."
India’s seven largest cities are set to deliver 531,470 new units in 2024. This is 22 per cent higher than the 435,045 units delivered in 2023. The highest number of units will be in Mumbai Metropolitan Region at 160,900, followed by 144,315 in NCR, and 97,000 in Pune.