The answer to the ‘rent or buy’ question keeps changing as the Indian housing market evolves. Latest ANAROCK data finds that capital values in key micro markets of the top 7 cities have grown by a significant 128% between 2021-end and 2024-end, while rental values in many micro markets have appreciated less than the overall capital value growth.
“An analysis of the key micro markets in the top 7 cities shows that in major cities like Bengaluru, MMR, NCR and Hyderabad, average capital values rose higher than rental values between 2021-end and 2024-end,” says Anuj Puri, Chairman – ANAROCK Group. “On the other hand, localities in Pune, Kolkata and Chennai saw the reverse trend – rental values appreciated more than the capital values.”
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Top markets where capital value growth outpaced rental value growth – 2021-end to 2024-end:
* NCR’s Sohna Road saw capital values go up by 59% while rental values rose by 47%. Sector-150 in Noida saw capital values appreciate by a whopping 128% while rental values rose by just 66% in the period.
* In Mumbai’s Chembur, capital value growth was 48% while rental appreciation clocked in lower at 42%. In Mulund, rental values rose by just 29% while capital prices went up 43%.
* Hyderabad’s HITECH City and Gachibowli also saw similar dynamics – in HITECH City, rental value growth was 54% and capital appreciation was 62%; in Gachibowli, rental values rose 62% and capital values 78%.
* While Bengaluru’s Thanisandra Main Road saw capital values appreciate more (67%) than avg. rental values (62%) in the period, Sarjapur Road saw average monthly rental values increase more (76%) than capital values (63%).
On the other hand, key micro markets in Pune, Kolkata and Chennai saw higher rental values growth than the capital value appreciation between 2021-end to 2024-end:
* Pune’s Hinjewadi saw rental values appreciate by 57%, while capital values rose by just 37%. In Wagholi, rental value growth was 65% while capital values rose by just 37%.
* In Kolkata’s EM Bypass, rental value appreciation was 51%, while capital values rose by just 19% in this period. In Rajarhat, rental values grew by 37% while capital appreciation was 32%.
* Chennai’s Pallavaram recorded rental values growth of 44%,
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