Mixed Trends in Rental and Capital Price Appreciation

The recent residential trends in key micro markets of top cities show that while in some markets average monthly rental values outstripped capital values in the last over two years,  in some other markets average capital values exceeded average rental values.

Anarock research data shows that rental values in key micro markets of the top 7 cities have gone up to a significant 72 percent between 2021 end and H1 2024 while capital values saw lower growth.  Dr Prashant Thakur, Regional Director & Head Research- Anarock Group says that data analysis shows that in cities like Bengaluru, Pune, Kolkata and Chennai, average residential rental values rose more than the capital values between 2021-end to H1 2024. However, areas in NCR, MMR and Hyderabad saw the reverse trend – capital values appreciated more than the rental values. 

Top markets where rental growth outpaced capital values

• Bengaluru’s Sarjapur Road saw average monthly rental values increase by 67 percent, while capital values increased by 54 percent. At Thannisandra Main Road, average rental values rose 56 percent while capital values appreciated 52 percent .

• Pune’s Hinjewadi saw rental values appreciate by 52 percent, while capital values rose just 31 percent. In Wagholi, rental values growth was 60 percent while capital values rose by just 30 percent.

• In Kolkata’s EM Bypass, rental value appreciation was 46 percent, while capital values growth was just 15 percent. In Rajarhat, rental value growth was 30 percent while capital appreciation was 23 percent.

• Chennai’s Pallavaram recorded rental value growth of 40 percent, while capital values rose by 18 percent. At Perambur, rental value growth was 33 percent while capital appreciation was 18 percent.

Source: ANAROCK Research

Top markets where capital value appreciation overtook rental value appreciation:

• NCR’s Sohna Road saw rental values rise 40 percent in the period, while capital values jumped by 54 percent. Likewise, Sector-150 in Noida saw rental value growth of 56 percent, while capital values appreciated by a whopping 126 percent.

• In MMR’s Chembur, rental growth was 38% while capital appreciation stood at 39 percent. In Mulund, rental values appreciated by 26 percentb while capital prices rose 36 percent.

• Hyderabad’s HITECH City and Gachibowli also saw capital appreciation outpace rental values. In HITECH City, rental value growth was 46 percent  and capital appreciation was 59 percent, while Gachibowli saw rental values rise 50 percent and capital values by 70 percent. 

Source: ANAROCK Research