Average rents for a standard 1,000 sq/ft 2-BHK in Bengaluru’s Whitefield rose by 4% from Rs 32,500 month in the Januray-March period of 2024 to Rs 35,000 per month so far in the second quarter of this calendar year, according to a report by real estate consultant ANAROCK.

In the quarter ended March 2024, the quarterly jump in average rents for 2-BHK flat was double at 8% over Q4 2023.

Bengaluru was followed by Hyderabad’s HITECH City and Gachibowli. These places of Hyderabad city saw average rents rise by 3% each at Rs 33,500 and Rs 33,000 for 2-bhk flat in Q2 2024 to date over the preceding quarter. In Q1 2024, the quarterly average rent hike in both these markets was 5%.

At number three position was Pune, with average rents for a 2-BHK in Hinjewadi and Wagholi rising 2% and 3% to Rs 27,000 and Rs 22,700, respectively in Q4 2024.

Average rents for a 2-BHK in Noida

Average rents in Noida’s Sector 150 rose by a mere 4% – from approximately Rs 24,000 month in Q1 2024 to approximately Rs 25,000 month in the current quarter. The quarterly hike stood at 9% in Q1 2024 against Q4 2023. Sohna Road and Dwarka saw their respective quarterly rents increase by 3% and 2% in Q2 2024; in Q1 2024, the hikes stood at 4% and 6%, respectively.

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Mumbai Metropolitan Region’s (MMR) key markets Chembur and Mulund saw average rents rise by just 2% against the
preceding quarter (Q1 2024); in Q1 2024, they rose by over 4% against Q4 2023, the report said.

With more supply hitting the top 7 cities’ markets, over-heated housing rents are stabilizing, as per the report.

Latest ANAROCK data shows that average residential rental prices across key markets in these cities saw a 2-4% quarterly rise in Q2 2024 to date over the preceding quarter. Q1 2024 saw rents in these markets rise by between 4-9% quarterly against Q4 2023.

Santhosh Kumar, Vice Chairman – 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.”

The top 7 cities – Bengaluru, Hyderabad, Pune, Mumbai, Delhi NCR, Chennai and Kolkata – are set to deliver approximately 5.31 lakh new units in 2024 while in 2023, these cities saw around 4.35 lakh units hit their markets. This denotes a 22% annual supply increase this year if delivery schedules remain on track.

City-wise completions in 2024

“ANAROCK data indicates that approx. 5,31,470 units are expected to be completed in 2024 across the top 7 cities, provided there are no delivery delays,” says Santhosh Kumar. “In 2023, approximately 4,35,045 units were completed in these cities.”

Among the top 7 cities, MMR is slated to see the highest completions at around 1,60,900 units in 2024. In 2023, the region saw approximately 1,43,500 units completed.