Hyderabad: The real estate sector in Hyderabad is experiencing a surge in rental rates. Most landlords in areas near workplaces have hiked rents significantly.
According to a report by NoBroker, Hyderabad residents are exhibiting increased rental budgets due to rising rents, shifting living preferences, and economic recovery. In the city, 65 percent of the tenants saw an increase in their rental budgets.
Tenants in Hyderabad seek more spacious accommodation
The report also highlighted that 61 percent of tenants in Hyderabad are seeking more spacious accommodation due to prolonged hybrid work arrangements.
Despite the surge in rental real estate in some areas in Hyderabad, 59 percent of tenants prefer to reside close to the workplace or kids’ school. The average rent inflation across Hyderabad is 11 percent, as some areas are in high demand, whereas others are not.
In Hyderabad, the most sought-after localities for rent are:
Top 10 tallest buildings in Hyderabad to come up in these localities
Why is rental real estate in Hyderabad surging?
According to the report, landlords are citing the following reasons for increasing rents:
- Because other people have increased
- Because there is more demand
- Rise in EMIs
- To make up for the lost rent during the pandemic.
In Hyderabad, 43 percent of landlords have reported 2-3 percent of the rental yield of their properties, whereas 17 percent believe that it is 3-4 percent.
Another 20 percent of landlords say that the rental yield is 4-6 percent. There are also 20 percent of landlords who believe that the rental yield is over 6 percent.
Due to higher rental yield, investors’ interest is at an all-time high.