Rents of residential buildings are increasing as the country wriggled itself from Covid-19. Average monthly rentals in posh residential colonies across seven major cities rose 8-18 per cent in last two years while capital value appreciated by 2-9 percent, according to Anarock. “Most prominent luxury housing markets witnessed double-digit growth in rentals in the last two years,” Anarock Chairman Anuj Puri said.
Real estate consultant Anarock noted that demand for luxury residential properties — for buying and renting — in upscale colonies has increased across the seven cities namely Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune. Appreciation of the rentals prior to Covid-19 in a specific period was limited to 5-7 percent. Puri said tenant preference has tilted towards large-size homes after the second wave of the pandemic. Bengaluru’s Rajaji Nagar witnessed the highest capital appreciation of 9 percent with average prices increasing to Rs 6,200 per square feet in 2022 from Rs 5,698 per sft in 2020.
“Pre-COVID, average 2-year luxury rental increases at a given time were largely single-digit, between 5-7 percent,” Anuj Puri said. As per the data, the monthly rentals in luxury residential hotspot JP Nagar, Bengaluru rose by 13 per cent to Rs 52,000 in 2022 from Rs 46,000 in 2020. Capital value increased 9 per cent to Rs 6,200 per square feet. At Rajaji Nagar in Bengaluru, the average monthly rentals rose by 16 per cent to Rs 65,000 from Rs 56,000 in 2020. Capital value grew 5 percent to Rs 139,00 per sft. In Chennai, average rentals in Anna Nagar rose 13 per cent to Rs 63,000 from Rs 56,000 per month. Capital prices increased by 5 per cent to Rs 11,850 per square feet from Rs 11,300 per sft. Average monthly rentals in the luxury residential hotspot Jubilee Hills, Hyderabad rose 15 percent to Rs 62,000 in 2022. HITECH City in Hyderabad saw an average rental increase of 11 percent to Rs 59,000.
In MMR, average monthly rentals in Tardeo rose 15 per cent to Rs 3.1 lakh from Rs 2.7 lakh. Capital prices increased by only 3 per cent to Rs 43,000 from Rs 41,862 per square feet in 2020. In Worli, average rentals increased 18 per cent to Rs 2.35 lakh per month from Rs 2 lakh per month in 2020. Capital values saw a mere 2 per cent rise to Rs 39,350 per square feet from Rs 38,560. In Delhi-NCR, average monthly rentals in Golf Course Road increased by 11 per cent to Rs 78,000 from Rs 70,000 in 2020. Capital values saw a mere 3 per cent rise to Rs 13,500 from Rs 13,150 per square feet.
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