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.
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