Hyderabad: The rental real estate market in Hyderabad has witnessed a dip in house rent growth in the second quarter of 2024.
In other top cities too, the quarterly rental growth declined to between 2-4 percent in Q2 2024, compared to 4-9 percent in Q1 2024.
Rental real estate in Hyderabad sees decline in house rent growth to 3 pc
According to a report by real estate services company ANAROCK, HITECH City and Gachibowli saw average rents rise by 3 percent each in Q2 2024 compared to the preceding quarter. In Q1 2024, the quarterly average rent hike in both these markets was 5 percent.
The dip in growth can be attributed to a rise in supply. With more new supply entering the markets, the highly speculative residential rental spike is coming to a halt.
As per the report, Hyderabad is slated to see 34,770 units completed by the end of 2024, whereas, in 2023, 20,500 units were completed.
Rental price growth drops by 50 pc in top cities
Not only Hyderabad but other cities’ rental real estate markets also saw a drop in the growth of house rents.
Santhosh Kumar, Vice Chairman of 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.”
Following are the house rents in top cities in India:
| Micro markets (Cities) | 2023-end (in Rs) | Q1 2024 (in Rs) | Q2 2024 (in Rs) |
| Sarjapur Rd (Bengaluru) | 31,600 | 34,000 | 35,000 |
| Whitefield (Bengaluru) | 30,200 | 32,500 | 33,700 |
| HITECH City (Hyderabad) | 31,000 | 32,500 | 33,500 |
| Gachibowli (Hyderabad) | 30,500 | 32,000 | 33,000 |
| Hinjewadi (Pune) | 25,600 | 26,500 | 27,000 |
| Wagholi (Pune) | 20,600 | 22,000 | 22,700 |
| Sohna Road (NCR) | 32,700 | 34,000 | 35,000 |
| Sector-150 (Noida) | 22,000 | 24,000 | 25,000 |
| Dwarka (NCR) | 25,800 | 27,400 | 28,000 |
| Chembur (MMR) | 60,000 | 62,500 | 63,500 |
| Mulund (MMR) | 46,500 | 48,500 | 49,700 |
| EM Bypass (Kolkata) | 25,600 | 27,000 | 27,800 |
| Rajarhat (Kolkata) | 18,500 | 19,000 | 19,500 |
| Perambur (Chennai) | 20,200 | 21,000 | 21,600 |
| Pallavaram (Chennai) | 19,500 | 20,300 | 20,800 |
These cities are expected to see the completion of over 531,000 units in 2024.
