- Among localities in top 7 cities, Mumbai’s Worli saw highest rental growth (18%); avg. rentals (for a min. 2,000 sq. ft. home) increased from INR 2 lakh in 2020 to INR 2.35 lakh in 2022
- Bengaluru’s Rajajinagar saw a 16% jump in the same period – from INR 56,000 in 2020 to INR 65,000 in 2022
- Most top luxury markets saw double-digit growth in rentals in the last two years; pre-Covid, the avg. 2-year luxury rental hikes were single-digit
- Capital appreciation in these luxury markets remained in single digits (2-9%) in last 2 years; Bengaluru’s Rajaji Nagar saw highest capital appreciation of 9% with avg. prices – from INR 5,698 per sq. ft. to INR 6,200 per sq. ft.
Residential rental markets across the top 7 cities have made a strong comeback after offices and schools reopened in 2022. Analysis of the average monthly rental trends across the leading luxury localities in the top 7 cities reveals that most markets have saw double-digit growth in the last two years, with only a few exceptions.
As per latest ANAROCK data, the average monthly rentals in the prominent luxury micro-markets across the top 7 cities increased anywhere between 8-18% in the last two years. Mumbai’s Worli saw the highest rental growth of 18% in the period – from INR 2 lakh per month in 2020 to INR 2.35 lakh in 2022 for luxury homes of minimum 2,000 sq. ft. area.
This was followed by Bengaluru’s Rajaji Nagar, which witnessed a 16% jump in the same period – from INR 56,000 in 2020 to INR 65,000 in 2022.
Anuj Puri, Chairman – ANAROCK Group, says, “Residential rental demand skyrocketed across the top cities in 2022 with schools reopening classrooms and most companies calling employees back to offices. Pent-up rental demand hitting the market has caused a demand-supply mismatch in many areas, resulting in monthly rental hikes. Also, post-Covid tenant preference has tilted towards large-size homes.”
“Most prominent luxury housing markets witnessed double-digit growth in rentals in the last two years,” says Puri. “Pre-Covid, average 2-year luxury rental increases at a given time were largely single-digit, between 5-7%.”
|Avg. Monthly Rentals: Top Luxury Markets (For 2,000 sq. ft. area)|
|City||Micro Market||2020 (INR)||2022 (INR)||% Appreciation (2020 vs 2022)|
|NCR||Golf Course Ext. Rd||50,000||56,000||12%|
|Golf Course Rd||70,000||78,000||11%|
Source: ANAROCK Research
Meanwhile, capital appreciation in these luxury markets remained in single digits (between 2-9%) in the last two years. Bengaluru’s Rajaji Nagar witnessed the highest capital appreciation of 9%, with average prices increasing from INR 5,698 per sq. ft. in 2020 to INR 6,200 per sq. ft. in 2022.
Top Luxury Hotspots – Rental vs Capital Price Changes
The luxury residential market has been on an upswing post the pandemic, with its overall sales share growing to about 14% in H1 2022. Even demand for rental luxury properties is on a high, resulting in growth in average monthly rentals.
Some of the prominent luxury markets in the top 7 cities that performed well in 2022 and may see further short to mid-term boosts:
|Avg. Capital Prices: Top Luxury Markets|
|City||Micro Markets||2020 (INR/sft.)||2022 (INR/sft.)||% Appreciation (2020 vs 2022)|
|NCR||Golf Course Ext. Rd||8,300||8,700||5%|
|NCR||Golf Course Rd||13,150||13,500||3%|
Source: ANAROCK Research
- Bengaluru – the luxury residential hotspot JP Nagar saw avg. monthly rentals appreciate by 13% in 2022 over 2020, while capital prices in this period rose by 9%. Likewise, Rajajinagar saw rental prices rise by 16%, and capital prices by 5%.
- MMR – luxury rentals in Tardeo rose 15% in this period, while capital prices increased by only 3%. Similarly, in Worli, the average monthly rentals for a minimum 2,000 sq. ft. area home increased by 18%, while capital prices saw a mere 2% jump.
- NCR – rentals in luxury hotspot Golf Course Road increased by 11%, while capital prices saw a mere 3% rise. Likewise, Golf Course Extension Road saw rentals increase by 12% and capital prices by 5% in this period.
- Chennai – luxury rentals in Anna Nagar rose 13% in this period, while capital prices increased by 5%. Similarly, in Kotturpuram, the average monthly rentals rose by 14% while capital prices rose by 4%.
- Hyderabad – the luxury residential hotspot Jubilee Hills saw avg. monthly rentals appreciate by 15% in 2022 over 2020, while capital prices in this period rose 6%. HITECH City saw a rental price rise of 11%, while capital prices increased by 7%.
- Pune – the rentals in Koregaon Park rose 14% in this period, while capital prices increased by 4%. In Prabhat Road, the average monthly rentals rose by 8% while capital prices rose by just 3%.
- Kolkata – luxury home rentals in Alipore rose 8% in 2022 against 2020, while capital prices increased by 4%. Similarly, in Ballygunge, the average monthly rentals rose 10% while capital prices rose by 3%.