Telangana Hyderabad - Rental price rise in Q2 of 2024 drops to 3%
The average rent increase in Hyderabad's rental market, namely in Hitec City and Gachibowli, was 3% in the second quarter (Q2) of 2024, down from 5% in the first quarter.
An increase in home supply is causing the formerly thriving rental markets in India's main cities to stabilize. The most recent data from Anarock indicates that average residential rental rates in the major cities increased by 2 to 4% every quarter in Q2 2024, which is a significant decrease from the 4 to 9% quarterly increases seen in Q1 2024.
An increase in home supply is causing the formerly thriving rental markets in India's main cities to stabilize. The most recent data from Anarock indicates that average residential rental rates in the major cities increased by 2 to 4% every quarter in Q2 2024, which is a significant decrease from the 4 to 9% quarterly increases seen in Q1 2024.
This trend's main emphasis, Hyderabad, is an example of this change. The average rent increases in Hyderabad's Gachibowli and Hitec City were only 3% in Q2 2024. This growth is comparable to the 5% increase these areas saw the previous quarter. According to the Anarock research, the number of finished units in the city is expected to increase dramatically from 20,500 in 2023 to around 34,770 by the end of 2024.
"In India, the second quarter typically sees higher rent increases due to the new academic year and employment trends," stated Santhosh Kumar, Vice Chairman of Anarock Group. This year, these areas are seeing a significant influx of new home supply at the same time as a falling increase in rental values.
"In India, the second quarter typically sees higher rent increases due to the new academic year and employment trends," stated Santhosh Kumar, Vice Chairman of Anarock Group. This year, these areas are seeing a significant influx of new home supply at the same time as a falling increase in rental values.
After completing 4,35,000 units in 2023, the top seven cities are predicted to provide around 5,31,000 additional units in 2024, a 22% increase. This pattern is also seen in other large cities. The average rent in Sector 150, Noida, increased by 4% in Q2 2024 as opposed to 9% in Q1 2024. Chembur and Mulund, two of Mumbai's most important marketplaces, had a 2% increase in Q2 2024 after rising by more than 4% in Q1 2024.
Generally, all of the top cities show a growth in the supply of housing. With around 1,60,900 units constructed in 2024—up from 1,43,500 in 2023—MMR is expected to take the lead. Even though Bengaluru is a popular destination for rentals, there will be a little decline from 52,565 units in 2023 to 51,685 units in 2024. Anarock's research indicates that there would be slight increases in completions in chennai and Kolkata.
Renters in major urban regions are getting much-needed relief from rising rental costs thanks in large part to this supply increase.
Renters in major urban regions are getting much-needed relief from rising rental costs thanks in large part to this supply increase.