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)
CityMicro Market2020 (INR)2022 (INR)% Appreciation (2020 vs 2022)
BangaloreJP Nagar46,00052,00013%
Rajaji Nagar56,00065,00016%
ChennaiAnna Nagar56,00063,00013%
Kotturpuram74,00084,00014%
HyderabadJubilee Hills54,00062,00015%
HiTech City53,00059,00011%
KolkataAlipore60,00065,0008%
Ballygunge88,00097,00010%
MMRTardeo2,70,0003,10,00015%
Worli2,00,0002,35,00018%
NCRGolf Course Ext. Rd50,00056,00012%
Golf Course Rd70,00078,00011%
PuneKoregaon Park59,50068,00014%
Prabhat Road64,00069,0008%
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
CityMicro Markets2020 (INR/sft.)2022 (INR/sft.)% Appreciation (2020 vs 2022)
BangaloreJP Nagar5,6986,2009%
BangaloreRajaji Nagar13,30013,9005%
ChennaiAnna Nagar11,30011,8505%
ChennaiKotturpuram13,50014,0004%
HyderabadJubilee Hills6,9507,4006%
HyderabadHiTech City5,6756,1007%
KolkataAlipore13,00013,5004%
KolkataBallygunge11,35011,7003%
MMRTardeo41,86243,0003%
MMRWorli38,56039,3502%
NCRGolf Course Ext. Rd8,3008,7005%
NCRGolf Course Rd13,15013,5003%
PuneKoregaon Park11,12811,6004%
PunePrabhat Road12,50012,9003%
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%.

Also Read: BKC rental deal for Rs 2.53 Crore per month

You May Also Like

Maharashtra Housing Minister to Unveil MHADA’s New Mascot on August 28

Mumbai, August 26, 2024: The Maharashtra Housing and Area Development Authority (MHADA),…

Tenders for Dharavi Redevelopment soon

Tenders for Dharavi’s redevelopment are expected to be floated soon, as Dy…

Real Estate’s Expectations from the 2024–2025 Interim Budget

Anuj Puri, Chairman – ANAROCK Group In 2023, the residential real estate…

Budget 2023-24 Balanced but Tepid for Real Estate

Anuj Puri, Chairman – ANAROCK Group The new measures announced in the…