Capital values higher than rent

Capital values higher than rent In Hyderabad’s real estate market, capital values have risen more than rental values. According to the latest Anarock report, during the period from the end of 2021 to the end of 2024, capital values have seen a greater increase compared to rental values. This trend has also been observed in Bengaluru, Mumbai, and Delhi, while Pune, Kolkata, and Chennai have witnessed a reverse trend where rental values have increased more than capital values.

The report highlights that in areas like Hyderabad’s Hi-Tech City and Gachibowli, capital values have risen more than rental values. For example, in Noida’s Sector 150, residential prices have increased by 128% in the last three years, while rental values have risen by 66%. Here, average capital values per square foot have doubled from ₹5,700 to ₹13,000, and rents have increased from ₹16,000 to ₹26,600 per month. In Gurgaon’s Sohna Road, capital values grew by 59%, while rents increased by 47%. By the end of 2024, the average capital value per square foot in this area is expected to rise from ₹6,600 in 2021 to ₹10,500, with rents increasing from ₹25,000 to ₹36,700.

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In Bengaluru, capital values (67%) on Tanishandra Main Road have grown more than rental values (62%). On Sarjapur Road, average monthly rents have risen more than capital values (63%). In Mumbai, areas like Chembur and Mulund have seen rental values grow by 48% and 43%, respectively, while capital values have increased even more.

In Pune, Kolkata, and Chennai, however, rental values have seen a greater rise. In Pune’s Hinjewadi, rental values increased by 57%, while capital values grew by just 37%. In Wagholi, rents rose by 65%, whereas capital values increased by 37%. In Kolkata’s EM Bypass, rental values grew by 51%, while capital values saw only a 19% increase. In Rajarhat, rental values rose by 37%, while capital growth was 32%.

Anuj Puri, Chairman of Anarock Group, stated that in the seven major cities of India—Bengaluru, Mumbai, Delhi, and Hyderabad—capital values have grown more than rental values. However, a reverse trend has been seen in Pune, Kolkata, and Chennai. He added that investors should adapt their strategies accordingly and focus on areas where rental values are gradually increasing.