Rental real estate sees dip in house rent growth in Hyderabad

Hyderabad Desk

Hyderabad: The rental real estate market in Hyderabad has witnessed a dip in house rent growth in the second quarter of 2024.

In other top cities too, the quarterly rental growth declined to between 2-4 percent in Q2 2024, compared to 4-9 percent in Q1 2024.

Rental real estate in Hyderabad sees decline in house rent growth to 3 pc

According to a report by real estate services company ANAROCK, HITECH City and Gachibowli saw average rents rise by 3 percent each in Q2 2024 compared to the preceding quarter. In Q1 2024, the quarterly average rent hike in both these markets was 5 percent.

The dip in growth can be attributed to a rise in supply. With more new supply entering the markets, the highly speculative residential rental spike is coming to a halt.

As per the report, Hyderabad is slated to see 34,770 units completed by the end of 2024, whereas, in 2023, 20,500 units were completed.

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Not only Hyderabad but other cities’ rental real estate markets also saw a drop in the growth of house rents.

Santhosh Kumar, Vice Chairman of ANAROCK Group, says, “In India, the second quarter of most years typically sees rents increase more than in other quarters due to the commencement of the new academic year and the employment of new staff. This year, declining rental value growth coincides with substantial new housing supply entering these markets.”

Following are the house rents in top cities in India:

Micro markets (Cities) 2023-end (in Rs) Q1 2024 (in Rs) Q2 2024 (in Rs)
Sarjapur Rd (Bengaluru) 31,600 34,000 35,000
Whitefield (Bengaluru) 30,200 32,500 33,700
HITECH City (Hyderabad) 31,000 32,500 33,500
Gachibowli (Hyderabad) 30,500 32,000 33,000
Hinjewadi (Pune) 25,600 26,500 27,000
Wagholi (Pune) 20,600 22,000 22,700
Sohna Road (NCR) 32,700 34,000 35,000
Sector-150 (Noida) 22,000 24,000 25,000
Dwarka (NCR) 25,800 27,400 28,000
Chembur (MMR) 60,000 62,500 63,500
Mulund (MMR) 46,500 48,500 49,700
EM Bypass (Kolkata) 25,600 27,000 27,800
Rajarhat (Kolkata) 18,500 19,000 19,500
Perambur (Chennai) 20,200 21,000 21,600
Pallavaram (Chennai) 19,500 20,300 20,800
Source: ANAROCK Research

These cities are expected to see the completion of over 531,000 units in 2024.

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