The demand for rental housing has risen significantly in major cities across India, leading to an increase in average monthly rent. Consequently, more individuals are now looking to purchase their own homes; however, high interest rates on home loans are making it increasingly difficult for them to do so. During the COVID-19 pandemic, many homes were empty for months, causing house rent rates to remain stagnant over the years. However, with remote work no longer an option, many are now flocking to big cities, thereby boosting the demand for rental housing. As a result, rental property owners are increasing their rent prices. According to leading property consultant Anarok, rent prices have gone up between 11% and 24% in cities like Bengaluru, Pune, Delhi-NCR, Mumbai, Chennai, Hyderabad, and Kolkata over the last year. North and East Bengaluru saw the highest increase of 24% in the average monthly rent for 1,000 sq ft two-bedroom flats. Bengaluru’s Thanisandra Main Road and Marathahalli-ORR saw a 24% increase in rent for 1,000 sq ft 2BHK homes during January-March 2023. Similarly, Chennai’s Perambur saw a 10% rent increase to Rs 18,500 from Rs 16,800 for January-March 2022.
Demand for rental housing has increased tremendously in some of India’s major cities, while the average monthly rent has risen sharply. Due to this, the number of people planning to buy their own house has increased.
People who are trying to buy their own house are struggling because of the high interest rates on home loans.
During the Corona period, not only many houses were empty for several months, but the house rent did not increase for many years, while the interest rate for housing loans has risen, while work from home has been completely eliminated, the demand for rental housing has increased due to the influx of people to the big cities.
Through this, the owners of the rental houses are increasing the rent. As a result, housing rents in big cities have increased tremendously in the last one year. In this situation, the country’s leading property consultant Anarok has listed how much house rent has increased in the important cities of the country.
In cities like Bengaluru, Pune, Delhi-NCR, Mumbai, Chennai, Hyderabad and Kolkata, the average monthly rent has increased by 11 per cent to 24 per cent in the past one year. In Bengaluru, the capital of Karnataka, house rents have risen by 24 percent in some areas.
Calculating the average monthly rent increase of 1,000 sq ft two-bedroom flats in 7 major cities over the past one year, North and East Bengaluru saw the highest rent increase in India by 24%, according to Anarock.
Thanisandra Main Road and Marathahalli-ORR in Bengaluru saw a 24 per cent increase in rent for 1,000 sq ft 2BHK house during January-March period. The monthly rent increased from Rs 22,500 to Rs 27,000 to Rs 28,500.
Bengaluru’s Whitefield and Sarjapur are the second and third highest rent increasers in the city with monthly rent increases of 21% and 20% between January-March 2022 and January-March 2023. The problem seems to be that the demand for rental housing in East and North Bengaluru is at an all-time high.
Similarly, the rent for a 1000 sq ft 2BHK house in Chennai’s Perambur has increased by 10 percent to Rs 18,500 from Rs 16,800 for January-March 2022. Similarly in Pallavaram it has increased by 16 per cent to Rs 18,000 and in Oragadam by 11 per cent to Rs 13,500.