With the growth of housing supply in top 7 cities' markets, over-heated housing rents are stabilizing. According to the latest data by ANAROCK 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.
The report also highlighted that, the top 7 cities are set to deliver approx. 5.31 lakh new units in 2024 while in 2023, these cities saw approx. 4.35 lakh units hit their markets. This denotes a 22% annual supply increase this year if delivery schedules remain on track.
The average range of rent for a standard 1,000 sq.ft. 2 BHK, in Bengaluru’s Whitefield rose by 4% – from Rs. 32,500/month in Q1 2024 to Rs. 35,000/month in Q2 2024 to date. In Q1 2024, the quarterly jump against Q4 2023 was double at 8%.
Vice Chairman of ANAROCK Group, Santhosh Kumar expressed, “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 data of Anarock also pointed out that, in 7 major metro cities Delhi NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata and Pune – are set to deliver approximately 531,000 new units in 2024 while in 2023, these cities saw around 435,000 units hit their markets. This denotes a 22% annual supply increase in 2024 if delivery schedules remain on track. MMR’s key markets Chembur and Mulund saw avg. rents rise by just 2% against the preceding quarter (Q1 2024); in Q1 2024, they rose by over 4% against Q4 2023. Hyderabad’s HITECH City and Gachibowli saw avg. rents rise by 3% each in Q2 2024 to date over the preceding quarter. In Q1 2024, the quarterly avg. rent hike in both these markets was 5%.
Santosh Kumar also added that, the Anarock data indicated that approximately 5,31,470 units are expected to be completed in 2024 across the top 7 cities, provided there are no delivery delays. during 2023, nearly 4,35,045 units were completed in these cities.
The report highlighted that, MMR is slated to see the highest completions at approx. 1,60,900 units in 2024. In 2023, the region saw approx. 1,43,500 units completed. NCR is expected to see approx. 1,44,315 units delivered in 2024, against approx. 1,14,280 units in 2023. Pune is expected to see approx. 97,000 units completed in 2024. In 2023, approx. 65,000 units were completed here.
Bengaluru, the key rental hub with the highest rental value hikes, will see approx. 51,685 units delivered in 2024, against approx. 52,565 units in 2023. Hyderabad is expected to see approx. 34,770 units completed 2024-end; in 2023, approx. 20,500 units were completed. Kolkata is expected to see approx. 25,220 units delivered in 2024. In 2023, approx. 25,075 units were completed here. Chennai will see the delivery of approx. 17,580 units in 2024, against 14,125 units in 2023.
Mohit Jain, Managing Director, Krisumi Corporation, expressed his opinions, saying, “The demand for luxury housing has seen a prominent upsurge nationwide. The luxury segment never witnessed sales at such a breakneck speed. Buyers are prioritizing comfortable living areas and dedicated workspaces. Builders have been able to sell their projects valuing thousands of crores within a few days as demand surpassed supply. Economic growth, higher supply from reputed branded builders and a surge in appetite for home ownership are some of the key growth drivers. This positive outlook is expected to result in a surge of new residential projects, in the luxury segment, catering to the growing number of discerning buyers and investors.”
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