Skyscraping rents: How living in metros in India has become costlier than before

In the past three and a half years, the Mumbai Metropolitan Region's (MMR) average rent has increased by up to 29%, according to a survey by CREDAI-MCHI and data analytics company CRE Matrix. The survey states that when compared to December 2018, the average monthly rentals in more than 80 micro-markets of the MMR increased between 4% and 29% in August 2022.

The MMR Property Rentals Tracker research examined trends in housing rentals for two-bedroom apartments in Grade-A structures that are no older than seven to eight years in Mumbai, Palghar, Raigad and Thane.

According to an Anarock report in September, the capital value of luxury residential colonies in seven major cities increased by 2–9% while average monthly rent increased by 8–18% over the previous two years.

The demand for luxury residential properties in upscale colonies has grown across the seven cities of Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad, and Pune, the report said.

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For luxury residences with 2,000 square feet, Worli in Mumbai witnessed the biggest rental gain of 18% to ₹2.35 lakh per unit per month from ₹2 lakh per month in 2020. Prior to COVID, annual increases in 2-year luxury rental rates were typically in the single digits, averaging between 5-7%.

The average monthly rent in JP Nagar, Bengaluru increased by 13% to ₹52,000 per flat with 2,000 square feet in 2022 from ₹46,000 in 2020, according to the data. To ₹6,200 per square foot, capital value grew by 9%.

The average monthly rent in Hyderabad's HITECH City increased by 11% to 59,000 for each flat with 2,000 square feet. Capital prices increased by 7% to $6,100 per square foot.

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For a premium apartment with 2,000 square feet, the average monthly rent in Chennai's Anna Nagar increased by 13% to ₹63,000 from ₹56,000. From Rs. 11,300 per square foot to Rs. 11,850 per square foot, capital prices increased by 5%.

For a 2,000 square foot apartment in Alipore, Kolkata, the average rent increased 8% from 2020 to 2022, from ₹60,000 per month to ₹65,000. Inflation-adjusted capital costs rose by 4% to ₹13,500 per square foot.

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For a two-bedroom apartment in Golf Course Road in Delhi-NCR, the average monthly rent grew by 11% from 2020 to ₹70,000 to ₹78,000. Only 3% more was spent on capital, or ₹13,500 per square foot, compared to ₹13,150.

(With agency inputs)