Top Luxury Housing Markets See Up To 18% Rental Growth in Last 2 Years
- 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) |
|
Bangalore |
JP Nagar |
46,000 |
52,000 |
13% |
|
Rajaji Nagar |
56,000 |
65,000 |
16% |
|
|
Chennai |
Anna Nagar |
56,000 |
63,000 |
13% |
|
Kotturpuram |
74,000 |
84,000 |
14% |
|
|
Hyderabad |
Jubilee Hills |
54,000 |
62,000 |
15% |
|
HiTech City |
53,000 |
59,000 |
11% |
|
|
Kolkata |
Alipore |
60,000 |
65,000 |
8% |
|
Ballygunge |
88,000 |
97,000 |
10% |
|
|
MMR |
Tardeo |
2,70,000 |
3,10,000 |
15% |
|
Worli |
2,00,000 |
2,35,000 |
18% |
|
|
NCR |
Golf Course Ext. Rd |
50,000 |
56,000 |
12% |
|
Golf Course Rd |
70,000 |
78,000 |
11% |
|
|
Pune |
Koregaon Park |
59,500 |
68,000 |
14% |
|
Prabhat Road |
64,000 |
69,000 |
8% |
|
Source: ANAROCK Research
Capital Appreciation
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) |
|
Bangalore |
JP Nagar |
5,698 |
6,200 |
9% |
|
Bangalore |
Rajaji Nagar |
13,300 |
13,900 |
5% |
|
Chennai |
Anna Nagar |
11,300 |
11,850 |
5% |
|
Chennai |
Kotturpuram |
13,500 |
14,000 |
4% |
|
Hyderabad |
Jubilee Hills |
6,950 |
7,400 |
6% |
|
Hyderabad |
HiTech City |
5,675 |
6,100 |
7% |
|
Kolkata |
Alipore |
13,000 |
13,500 |
4% |
|
Kolkata |
Ballygunge |
11,350 |
11,700 |
3% |
|
MMR |
Tardeo |
41,862 |
43,000 |
3% |
|
MMR |
Worli |
38,560 |
39,350 |
2% |
|
NCR |
Golf Course Ext. Rd |
8,300 |
8,700 |
5% |
|
NCR |
Golf Course Rd |
13,150 |
13,500 |
3% |
|
Pune |
Koregaon Park |
11,128 |
11,600 |
4% |
|
Pune |
Prabhat Road |
12,500 |
12,900 |
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%.
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