Housing rental market trends in India indicate that slightly over sixty-four percent of renters intend on becoming homeowners four years from now, there are still thirty-six percent who opt for renting homes rather than investing in their own.
The year 2024 has seen a rental market boom in India, as demand has shot up in various urban areas mainly thanks to people returning from working at home after the COVID period and increasingly large numbers of employed but unmarried young persons in need of housing rented apartments.
Welcome to housing rental market trends in India, where rentals are burgeoning and dynamic! India’s rental sector caters to all preferences and budgets; hence you must be well-informed before making any decision whether you are new to this society or have lived here your entire life. The article focuses on the rental trends in top cities of India in 2024.
City-Wise Rental Market Trends in India for Top Cities in 2024
1. Bengaluru Rental Market Trends:
Bengaluru is the unchallenged leader given its strong IT sector which is behind the demand for lease properties. India’s IT hub, Bengaluru, is experiencing a very hot housing market in 2024. One of the factors driving the surge in Demand is the return to office spaces after the pandemic. This has increased demand for rental properties resulting from the recall of IT employees by their employers.
Particular places of Bengaluru may see their values increase more than rationally expected at present. You must note some areas have seen an 8 percent increase alone on the rates of a standard 2BHK apartment over Sarjapur Road and Whitefield in a quarter leading to 2024.
2. Chennai Rental Market Trends:
The rents that have risen steadily in the city’s rental market for the past couple of years have grown relatively moderately in recent times; in this regard, Chennai’s average rental value increased approximately seven percent during the years 2018 till 2024.
The top areas for high return on rentals are, West Mambalam, Valasaravakkam, Virugambakkam, Vadapalani, T Nagar, Ashok Nagar, KK Nagar, Anna Nagar, Adyar, and Thiruvanmiyur.
3. Hyderabad Rental Market Trends:
In the second quarter of 2024, Hyderabad’s rental market had an average rent increase of 3 per cent, which was lower than the 5 percent increase recorded in Q1.
Rent hikes are normally higher in the second quarter because it is usually the time for new students to be admitted into universities and colleges, as well as when most of the employment opportunities become available.
Top localities with high returns on rent are Gachibowli, Kukatpally, Madhapur, Kondapur, Manikonda, Miyapur, Banjara Hills, Jubilee Hills, Hitech City are some of the localities.
4. Mumbai Rental Market Trends:
In the region of Mumbai, the rental charges’ rise averaged at 2% in the key localities as against the prior quarter (Q1 2024); however, this was much higher with over 4% surge when compared to the rates of Q4 2023 in Q1 2024.
With supplies getting a boost and hitting on the top, the overheatedTop localities with high return on rent in Mumbai are Bandra West, Chembur, Powai, Borivali, Goregaon, Andheri East, Kandivali are some of the localities rental markets are cooling down.
5. Kolkata Rental Market Trends:
After the pandemic, the demand for the IT industry is leading the way in the rental market for homes in Kolkata. The areas of New Town, Rajarhat, and Garia have seen their rents go up significantly because there are not enough apartment complexes available there. According to Anarock’s information, the city-state of Kolkota has a 3.8% rental yield as compared with all other major cities.
The top localities with a high return on rent in Kolkata are Rajarhat, Tollygunge, Garia, New Town, Dum Dum, and Joka are some of the localities.
6. Delhi NCR Rental Market Trends:
By 6%, rents in Delhi’s Dwarka saw an increase whereas in Noida’s Sector 150 situated within NCR, they rose by 9%.
Office rentals have a huge demand, especially, The central business district (CBD) was the priciest area to rent an office space in the Delhi-NCR region of India for the month ending on March 31st, 2024 with average rentals at approximately 319.8 Indian rupees per square foot per month.
The top sought-after localities for rent in Delhi NCR are, Saket, Uttam Nagar, Dwarka, Laxmi Nagar, Mayur Vihar, and Vasant Kunj are some of the localities
7. Pune Rental Market Trends:
In 2024, Pune has different places that match any person’s expenses with good living standards. From lively districts having crowded markets up to quiet zones for living in where one may balance between low costs and convenience, Pune has it all.
Some of the top localities sought after for rent are, Kharadi, Hinjewadi, Hadapsar, Kothrud, Viman Nagar, and Baner.
8. Ahmedabad Rental Market Trends:
We have seen that the cost of living here in this city is less compared to some of its peers such as Mumbai and Hyderabad among other cities with high population rates as well as amenities. But this argument may not hold strong, because Ahmedabad is becoming one of the fast-growing cities with much more popularity than the capital of Gujarat.
The top localities in Ahmedabad for rentals are Chandkheda, SG Highway, Prahlad Nagar, Thaltej, Ambli, and Gota.
9. Gurgaon Rental Market Trends:
Gurgaon has emerged as a magnet for property investment due to high commercial and residential property demand. In 2023, Gurugram topped other cities by recording an astronomical 28% quarter-on-quarter increase that exceeded the national average of 10.4%. The rentals have seen a surge year on year.
The top localities in Gurgaon for rentals are DLF City Phase 1,2,3,4,5, South City 1, Sohna Road, Palam Vihar, and MG Road.
10. Kochi Rental Market Trends
In God’s own country, Kochi is a favorite choice for many due to the advantage of comfortable urban living offered by Kochi, with its swanky malls, beaches, and historical places. There are plenty of vacation apartments offered for rent and flats with green living at a decent rent.
Some of the top localities are Kakkanad, Tripunithura, Aluva, Edapally, Kaloor, and Marine Drive.
Housing Supply for Top Cities:
Bangalore: In the first quarter of 2024, Bengaluru experienced a decline in its supply of residential units from the previous quarter and the same quarter last year. In Q1 2024, the city recorded the launch of about 10,000 units but this represented a 23% drop from the previous year’s Q1 of 2023.
Hyderabad: Roughly 34,770 units are expected to be completed by the end of 2024 in Hyderabad with approximately 20,500 units having been completed in 2023.
Mumbai: By 2024 end, 160,900 units are expected to be completed in the Mumbai Metropolitan Region and it will see the highest completions in any of the top seven cities followed by about 143,500 units in 2023.
Kolkata: In 2024, it is predicted that Kolkata will deliver about 25,220 units but in the year before about 25,075 units were completed in Kolkata.
Delhi NCR: NCR’s real push factor was the resolve of developers to manage the addition of new supply. According to ANAROCK data, NCR saw an overall new supply of about 1.81 lakh units during Q1 2018 through to Q1 2024.
Pune: In March 2024, Pune witnessed an increase of 52%, with 21,744 houses being registered, up from 14,309 over the same period in the previous year.
Ahmedabad: The housing sales in Ahmedabad grew as high as 78 percent during the January-March period of 2024 showing an increase from 7256 units sold in year ago periods to 12915 units currently being placed on offer.
Gurgaon: Reports suggest new launches are happening. .There have been new project launches in 2024, though the exact figures aren’t widely reported.
Kochi: The widespread demand for apartments and villa projects in Kochi is currently being met by leading real estate groups. The job market of Kochi is booming, which has also boosted the demand for modern homes designed well.
Housing Rental Market Trends: Rental Yield in Percentage City & Year Wise:
Housing Rental Market Trends Increase Or Drop:
Overheated housing rentals are beginning to stabilize as more housing supply enters the markets of the top cities. According to data released by a market source, residential rentals in important micro markets in major cities increased by 2-4% in Q2 2024 as opposed to 4-9% in Q1 2024. More housing supply can have an impact on housing rental market trends.
According to the most recent ANAROCK data, the increase of rental costs in the top seven cities across Indian marketplaces is trending downward. According to the data, the second quarter of 2024 saw a rise in average residential rental prices across important markets in these cities of 2 and 4% from the previous quarter.
Rent prices in the top markets increased by 4 to 9 percent every quarter in the first quarter of this year compared to the fourth quarter of the previous year (Q4 2023).
Housing Rental Market Trends Forecast for Next Quarter:
Trends in the housing rental sector should remain stable. 2024’s for another three months. The months of September, October, and November mark the beginning of the next fiscal year, and by then, we may anticipate a rise in rental demand and higher rents.