According to a recent report by Anarock Research, India’s residential housing market is experiencing a surge, with housing prices soaring, unsold inventory shrinking, and rental rates on the rise in major cities. The report shows that the average rent costs have increased in double digits across most major cities since last year, with Bengaluru leading the pack.
The demand for rental property has been increasing since offices and schools reopened after the third Covid-19 wave, leading to residential rental values appreciating by nearly 25%. Anarock’s analysis included prime areas of the top seven cities, namely Delhi-NCR, Hyderabad, Chennai, Kolkata, Mumbai, Bengaluru, and Pune, for a 2BHK home of 1,000 sq. ft. area.
In Bengaluru, four prime areas, including Thanisandra Main Road and Marathahalli outer ring road, saw the highest year-on-year growth of 24% each in the January-March quarter. The report further reveals that other major cities, such as Mumbai, Thane, and NCR, also witnessed rental value growth of 10-17%.
The report also suggests that the housing market’s buoyancy is likely to continue, with new property launches, sales numbers, and lower inventory indicating a positive trend. However, analysts caution that impending global recession, continued inflation, and repo rate hikes could have a short-term impact on the housing sales market.
The report also highlights that the increased appetite for owning a dream house is being driven by millennials, with 61% of survey participants preferring to invest in real estate, out of which 52% were millennials.
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