Housing rent in Bengaluru rises by more than 30% this year; Whitefield sees highest growth in nine-month

The housing rents have seen a massive jump in Bengaluru in the first-nine months of this year. India's IT hub has seen a surge up to 31% in residential rent so far this year, a report by Anarock Property Consultants said on Thursday.

A standard 2BHK flat of 1,000 sqft (approx) area in Bengaluru’s Whitefield saw rents grow by 31% between January-September this year, followed by Sarjapur Road where rents rose by 27% in the same period.

"Average monthly rent for a standard 2BHK home of 1,000 sqft at Whitefield increased from ₹24,600 per month by 2022-end to ₹28,500 per month by September-end 2023. At Sarjapur Road, average monthly rents increased from ₹24,000 per month in 2022-end to ₹30,500 per month in September 2023".

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Besides Bengaluru, housing rents have soared in other metropolitan cities including Hyderabad, Pune, Delhi and Mumbai. Hyderabad and Pune, the other two IT/ITeS hubs in the country, have also emerged as rental growth hotspots.

As per the Anarock report, Hyderabad saw up to 24% growth in this period. In the hi-tech city, the average rents stood at ₹24,600 per month by 2022-end; by the end of September 2023, the rent hiked to ₹28,500 per month - a 16% growth in the nine-months period.

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Rent in Gachibowli zoomed up up by 24% in the same period – from ₹23,400 per month by 2022-end to ₹29,000/month by September-end this year.

In Pune's Hinjewadi micro-market recorded a rental value growth of 17% in the last nine months. Here, the average rents were ₹21,000/month by 2022-end and ₹24,500/month by September-end 2023.

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In Delhi-NCR, the areas where rent has soared in between January and September  are Sohna Road in Gurugram (rental values up by 11%), Sector-150 in Noida (13% growth) and Dwarka in Delhi (14% growth).

In Mumbai, the top two markets to see rental value rise were Chembur and Mulund, which saw 14% and 9% growth, respectively between January and September 2023. In Chennai's Pallavaram and Perambur, housing rentals saw 12% and 9% growth, respectively during the same period. Kolkata’s top two markets for high rental value growth in nine months were EM Bypass and Rajarhat, which saw 14% and 9% growth, respectively. 

Notably, the annual ROI from capital invested in a property was never attractive. However, with rental demand picking up after Covid-19 pandemic in 2022, there has been a considerable change as investors are back on the housing market, the Anarock report claimed.

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"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% in the top 7 cities," Anuj Puri, Chairman – ANAROCK Group said.

Among the top metro cities in the country, Bengaluru has the highest rental yield of 4.35% as of September 2023-end, followed by Mumbai with 4.05%. 

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Pre-Covid in 2019, the rental yield in Bengaluru was at 3.6%-highest in that year.

In the next few months, Anarock Group chairman has anticipated an increase in the rent. He said, "Rents will once again build up steam when renting picks in the January to March period as Indians usually relocate for better job opportunities amid increased hiring in the new financial year".