In the wake of major tech giants ending their work-from-home (WFH) policies, housing rents in India’s leading IT/ITeS hubs have witnessed a significant surge. Bengaluru, Hyderabad, and Pune, known for their thriving tech ecosystems, are at the forefront of this rental boom.
Bengaluru’s Rental Landscape
The latest data from ANAROCK Research reveals that residential rentals in Bengaluru’s prominent areas surged by over 30% in the first nine months of 2023. In specific localities like Whitefield and Sarjapur Road, the spike in rents for a standard 2BHK flat (approximately 1,000 sq.ft.) was particularly noteworthy.
- Whitefield: Rents grew by an impressive 31%, soaring from Rs 24,600 per month at the end of 2022 to Rs 28,500 per month by September-end 2023.
- Sarjapur Road: Experiencing a 27% increase, average monthly rents climbed from Rs 24,000 in 2022 to Rs 30,500 in September 2023.
Hyderabad Emerges as a Rental Hotspot
Hyderabad, another major IT/ITeS hub, emerged as the second-best city for rental value growth. Key markets in the city witnessed up to a 24% surge in rental values during the same period.
- HITECH City: Average rents jumped by 16%, from Rs 24,600 a month at the end of 2022 to Rs 28,500 by Q3 2023.
- Gachibowli: Experiencing a robust 24% growth, rents escalated from Rs 23,400 per month in 2022 to Rs 29,000 per month by September-end 2023.
Pune Witnesses Rental Growth
Pune, with its significant IT presence, also observed substantial rental value growth. The Hinjewadi micro-market recorded a commendable 17% increase in the last nine months.
Hinjewadi: Average rents rose from Rs 21,000 per month at the end of 2022 to Rs 24,500 per month by September-end 2023.
Post-Pandemic Rental Resurgence
Anuj Puri, Chairman at ANAROCK Group, highlighted the remarkable comeback of residential rents post the pandemic. He noted that the first nine months of 2023 witnessed a staggering 30% surge in housing rents across the top 7 cities. Bengaluru’s continued prominence in this rental surge underscores the resilience of the Indian Infotech sector, emphasizing its fundamental strength despite industry belt-tightening measures. TechGig