House rent across major cities in India to keep rising in 2023: Anarock

The biggest jump in the house rent was seen in Noida Sector 150 where the monthly rent for a 1,000 sq ft flat jumped 23 per cent from Rs 15,500/month in 2019 to Rs 19,000/month

On the back of increasing demand, house rents in major cities in India will continue to rise in 2023, property consultancy Anarock said. Between 2019 and 2022, the average rent jumped 23 per cent in major Indian cities. The main reason for the demand increase is the re-opening of offices after a long hiatus due to the Covid-19 pandemic.

"With more companies calling their employees back to the office, including in the hybrid mode, rental demand is rising across the 7 top cities, after plummeting during the two worst Covid-19 waves. We still recall the death knell being rung for the rental market in 2020," said Anuj Puri, chairman at the Anarock Group. 

The biggest jump in the rent was seen in Noida Sector 150, where the monthly rent for a 1,000 sq ft flat jumped 23 per cent from Rs 15,500/month in 2019 to Rs 19,000/month. Wagholi and Hinjewadi followed it in Pune, where the rent rose 21 and 20 per cent, respectively. 

Chennai's Pallavaram, Kolkata's EM Bypass, Bengaluru's Whitefield and NCR's Dwarka and Sohna roads also saw a double-digit rent increase between 2019 and 2022. 

The demand for such homes is likely to stay high this year too. 

"Employees returning from their hometowns or other parts of the city tend to rent homes for at least the short-term, often to consider purchases at a later stage. As both property prices and interest rates continue to rise, the overall cost of property acquisition is increasing, leading to an increase in deferred property purchase decisions. Resultantly, they will seek rental homes," Puri said. 

He added that more parents would look to locate the family close to schools ahead of the new academic session, leading to further hikes in rental demand in the coming months.

In luxury homes, NCR's Golf Course Extension saw the highest growth of 18 per cent from Rs 49,000/month in 2019 to Rs 58,000/month in 2022 for homes of 2,000 sq ft area. This was followed by Hyderabad's Jubilee Hills, which witnessed a 17 per cent jump in the same period, from Rs 54,000/month in 2019 to Rs 63,000/month in 2022.

Mumbai's Worli, Bengaluru's Rajaji Nagar and Chennai's Anna Nagar saw rental growth of 16 per cent between 2019 and 2022.