Hyderabad: The growing demand for bigger houses, especially with work-from-home becoming the new normal, has led to Hyderabad’s rental market booming, show market reports. And leading this trend is the city’s primary IT hub: Hi-Tec City. The luxury residential segment here (houses above 2,000 square feet in size), witnessed a 26% jump in rentals between 2014 and 2020 – highest among the top seven cities of India – reveal Anarock Property Consultants’ latest survey.
In comparison, the increase in average monthly rentals, for the same period, along Gurgaon’s Golf Course Road, stood at 17%. Apart from the growing need for larger spaces, the rise in commercial transactions in Hyderabad, is another reason for this hike in rents. “The city also saw increased office leasing activity over the year by several large companies who are either looking to establish their base or expanding their already-existing business. This in turn is leading to high demand for residential spaces by the employees migrating to the city,” said Anuj Puri, chairman of Anarock predicting a further rise in rentals, growing forward. “These may range anywhere between 3% and 7% over the next one year. As long as office leasing activity continues to grow in the city, demand for residential rentals will only rise,” he added.
In fact, this is likely to be true of most leading cities, the Anarock report states, pointing out how the luxury market across Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Bengaluru, Pune and even Hyderabad has growth consistently by 3% to 6% per year, post 2014.
“After a setback due to Covid-19, it appears to have recovered with demand for rental luxury properties back almost to pre-Covid levels. Monthly rentals in some localities have begun rising. With vaccinations rolling out and positivity returning, these markets will pick up new momentum,” the report said.