Rentals in prime micro-markets surge on rising demand for larger homes

economictimes.indiatimes.com:

Renting costs in prime residential micro-markets in Mumbai, Delhi, Bengaluru, Noida, and Gurugram have surged by up to 35% in 2023, driven by the resumption of normal office routines by corporate employees who had chosen to work from non-metro locations through the Covid years. Central Delhi, Golf Course Road, and Dwarka Expressway in Gurugram have witnessed the highest appreciation of 35% while in Mumbai, rentals have increased by 19%.

As per Savills India, cities are observing a rise in average rental values due to the increasing demand for leasing larger homes, with improved amenities gaining momentum.

«The limited availability of luxury properties in prime areas like Lutyens, South Delhi, Golf Course Road, and other upscale neighbourhoods in the NCR region and other major cities has driven rental rates up by 30-40% in the past couple of years,» stated Ashwin Chadha, CEO of India Sotheby's International Realty.

The opening of metro lines 2A and 7 between Dahisar and Andheri has boosted demand for rental homes, particularly in the western suburbs' micromarket.


The market saw substantial demand for rental homes in Kandivali and Borivali from students travelling by metro to colleges in Andheri and Vile Parle, resulting in an 8% year-on-year increase in rental rates.

«Delhi's marque locations also have a captive demand from embassies, and luxury homes in these areas find quick takers. Bungalows in Lutyens Zone, Delhi, were being leased out around ₹10-12 lakh per month sometime ago, and now luxury apartments and high-end condos in Delhi NCR and Mumbai MMR are being rented for ₹14 lakh per month and above,» Chadha said.