Home rents surge the most in Noida, Pune, Bangalore: report

With the impact of the COVID-19 pandemic receding and people coming back from their hometowns, housing rentals in key markets have surged significantly in 2022. As per data from Anarock Research, average home rents in Noida micro-market surged the most, followed by Pune and certain areas in Bengaluru.

In Noida Sector 150 - an emerging housing market in the National Capital Region of Delhi - average home rentals surged by a whopping 23 per cent between 2019 and end-2022. While at the end of 2019, average rent for a 1,000 square-feet apartment in the area stood at Rs 15,500 per month, it surged to Rs 19,000 per month by end-2022.

In Pune’s Wagholi micro-market, the average monthly rent surged 21 per cent - from Rs 14,000 to 17,000 per month by end-2022, while in another prominent micro-market Hinjewadi it grew 20 per cent. Bengaluru - the tech capital of the country recorded healthy double digit jump in rentals during the period as, like in Pune, IT and tech sector employees flocked back to their work cities from their hometowns as employers cut on their work from home schedules.

In Bengaluru’s Whitefield - the city first tech corridor - average monthly rent jumped 18 per cent to Rs 22,500. However, it remains much lower than sub-prime Mumbai locations like Chembur and Mulund. Rentals and home prices are traditionally higher in the financial capital of India. 

In Mumbai’s Chembur, the average monthly rent for an 1,000 sq.ft. apartment stood at Rs 51,000 or 13 per cent higher than what it was at the end of 2019. While in Mulund, it surged 6 per cent from pre-COVID days to 41,000 per month.

“Rental demand increased substantially in 2022. 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 of Anarock Group. According to him, home rentals will continue to rise in 2023.

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