Indian Cities Where Renting Makes More Sense Than Buying
Bengaluru's Sarjapur Road saw a 67% surge in rental values, outpacing capital growth. Is renting the new buying?
Indian Real EstateRenting Vs BuyingBengaluruPuneKolkataChennaiNcrMmrHyderabadReal EstateSep 20, 2024
Recent data from Anarock shows that in cities like Bengaluru, Pune, Kolkata, and Chennai, average residential rental values rose more than capital values between 2021-end to H1 2024. This surge in rental values highlights the growing demand for rental properties in these areas.
Bengaluru's Sarjapur Road saw average monthly rental values increase by 67%, while capital values increased by 54%. At Thannisandra Main Road, average rental values rose 56% while capital values appreciated 52%. Pune's Hinjewadi saw rental values appreciate by 52%, while capital values rose just 31%. In Wagholi, rental values growth was 60% while capital values rose by just 30%.
Kolkata's EM Bypass recorded rental value appreciation of 46%, while capital values growth was just 15%. In Rajarhat, rental value growth was 30% while capital appreciation was 23%. Chennai's Pallavaram recorded rental value growth of 40%, while capital values rose by 18%. At Perambur, rental value growth was 33% while capital appreciation was 18%.
However, not all cities followed this trend. Key micro-markets in NCR, MMR, and Hyderabad witnessed capital value appreciation outpacing rental value growth. For instance, NCR's Sohna Road saw rental values rise 40% in the period, while capital values jumped by 54%. In MMR's Chembur, rental growth was 38% while capital appreciation stood at 39%.
Frequently Asked Questions
Which cities in India have seen the highest rental growth?
Bengaluru, Pune, Kolkata, and Chennai have seen the highest rental growth, with cities like Bengaluru's Sarjapur Road recording a 67% surge in rental values.
What drives the decision to buy or rent a property?
Factors such as financial wherewithal, job growth prospects, stage of life, size of family, and personal preferences drive the decision to buy or rent a property.
Which cities have seen capital value appreciation outpacing rental value growth?
Key micro-markets in NCR, MMR, and Hyderabad have witnessed capital value appreciation outpacing rental value growth.
How can I determine whether it is more advantageous to buy a property or opt for renting?
Data analysis of key micro-markets can be a key parameter used to determine whether it is more advantageous to buy a property or opt for renting.
What is the role of Anarock in the Indian real estate market?
Anarock is a leading property consulting firm that provides research-based advice to clients looking to buy, sell, or rent properties in India.
Related News Articles
Sattva Group to Revolutionize Indian Realty with REIT and IPO Plans
Sattva Group, a Bengaluru-based realty player, is gearing up to float a REIT for its commercial assets and plans to invest Rs 12,000-14,000 crore in the next 2-3 years.
Real Estate Giant DLF's Spectacular Rise: Can it Reach Four Digits?
DLF Ltd, a leading real estate developer, has delivered spectacular returns in two years, rising 127% and market analysts believe it can reach new heights.
Om Logistics Expands PAN India Operations with Acquisition of Inland Container Depot Bawal
Om Logistics acquires ICD Bawal in Haryana for INR 110 crore, strengthening its position in the logistics industry
Ramco Cements Boosts Grinding Capacity at Kalavatala Plant
Ramco Cements increases cement grinding capacity by nearly 1 million tonnes per annum at its Kalavatala Plant in Andhra Pradesh.
Goyal Assures Realtors of Easy Financing, Faster Approvals
Union Commerce and Industry Minister Piyush Goyal promises to take up financing issues of realtors with RBI, assures faster approvals for projects
Diwali Housing Sales Slump for Real Estate Developers
Residential sales have dropped 10-15% this Diwali due to higher prices and a lack of new launches in major cities like Mumbai and Hyderabad. Despite initial expectations, the festive season is not meeting last year's high sales numbers.