Guest Blog-Top Luxury Housing Markets See Up To 18% Rental Growth In Last 2 Years
Residential rental markets across the top 7 cities have made a strong comeback after offices and schools reopened in 2022. Analysis of the average monthly rental trends across the leading luxury localities in the top 7 cities reveals that most markets have seen double-digit growth in the last two years, with only a few exceptions.
As per the latest ANAROCK data, the average monthly rentals in the prominent luxury micro-markets across the top 7 cities increased anywhere between 8-18% in the last two years. Mumbai’s Worli saw the highest rental growth of 18% in the period – from INR 2 lakh per month in 2020 to INR 2.35 lakh in 2022 for luxury homes of a minimum 2,000 sq. ft. area.
This was followed by Bengaluru’s Rajaji Nagar, which witnessed a 16% jump in the same period – from INR 56,000 in 2020 to INR 65,000 in 2022.
Anuj Puri, Chairman – of ANAROCK Group, said, “Residential rental demand skyrocketed across the top cities in 2022 with schools reopening classrooms and most companies calling employees back to offices. Pent-up rental demand hitting the market has caused a demand-supply mismatch in many areas, resulting in monthly rental hikes. Also, post-Covid tenant preference has tilted towards large-size homes.”
“Most prominent luxury housing markets witnessed double-digit growth in rentals in the last two years,” says Puri. “Pre-Covid, average 2-year luxury rental increases at a given time were largely single-digit, between 5-7%.”
| Avg. Monthly Rentals: Top Luxury Markets (For 2,000 sq. ft. area) | ||||
| City | Micro Market | 2020 (INR) | 2022 (INR) | % Appreciation (2020 vs 2022) |
| Bangalore | JP Nagar | 46,000 | 52,000 | 13% |
| Rajaji Nagar | 56,000 | 65,000 | 16% | |
| Chennai | Anna Nagar | 56,000 | 63,000 | 13% |
| Kotturpuram | 74,000 | 84,000 | 14% | |
| Hyderabad | Jubilee Hills | 54,000 | 62,000 | 15% |
| HiTech City | 53,000 | 59,000 | 11% | |
| Kolkata | Alipore | 60,000 | 65,000 | 8% |
| Ballygunge | 88,000 | 97,000 | 10% | |
| MMR | Tardeo | 2,70,000 | 3,10,000 | 15% |
| Worli | 2,00,000 | 2,35,000 | 18% | |
| NCR | Golf Course Ext. Rd | 50,000 | 56,000 | 12% |
| Golf Course Rd | 70,000 | 78,000 | 11% | |
| Pune | Koregaon Park | 59,500 | 68,000 | 14% |
| Prabhat Road | 64,000 | 69,000 | 8% | |
Source: ANAROCK Research
Capital Appreciation
Meanwhile, capital appreciation in these luxury markets remained in single digits (between 2-9%) in the last two years. Bengaluru’s Rajaji Nagar witnessed the highest capital appreciation of 9%, with average prices increasing from INR 5,698 per sq. ft. in 2020 to INR 6,200 per sq. ft. in 2022.
Top Luxury Hotspots – Rental vs Capital Price Changes
The luxury residential market has been on an upswing post the pandemic, with its overall sales share growing to about 14% in H1 2022. Even demand for rental luxury properties is on a high, resulting in growth in average monthly rentals.
Some of the prominent luxury markets in the top 7 cities that performed well in 2022 and may see further short to mid-term boosts
| Avg. Capital Prices: Top Luxury Markets | ||||
| City | Micro Markets | 2020 (INR/sq ft.) | 2022 (INR/sq ft.) | % Appreciation (2020 vs 2022) |
| Bangalore | JP Nagar | 5,698 | 6,200 | 9% |
| Bangalore | Rajaji Nagar | 13,300 | 13,900 | 5% |
| Chennai | Anna Nagar | 11,300 | 11,850 | 5% |
| Chennai | Kotturpuram | 13,500 | 14,000 | 4% |
| Hyderabad | Jubilee Hills | 6,950 | 7,400 | 6% |
| Hyderabad | HiTech City | 5,675 | 6,100 | 7% |
| Kolkata | Alipore | 13,000 | 13,500 | 4% |
| Kolkata | Ballygunge | 11,350 | 11,700 | 3% |
| MMR | Tardeo | 41,862 | 43,000 | 3% |
| MMR | Worli | 38,560 | 39,350 | 2% |
| NCR | Golf Course Ext. Rd | 8,300 | 8,700 | 5% |
| NCR | Golf Course Rd | 13,150 | 13,500 | 3% |
| Pune | Koregaon Park | 11,128 | 11,600 | 4% |
| Pune | Prabhat Road | 12,500 | 12,900 | 3% |
Source: ANAROCK Research
- Bengaluru – the luxury residential hotspot JP Nagar saw an avg. monthly rentals appreciate by 13% in 2022 over 2020, while capital prices in this period rose by 9%. Likewise, Rajajinagar saw rental prices rise by 16%, and capital prices by 5%.
- MMR – luxury rentals in Tardeo rose 15% in this period, while capital prices increased by only 3%. Similarly, in Worli, the average monthly rentals for a minimum 2,000 sq. ft. area home increased by 18%, while capital prices saw a mere 2% jump.
- NCR – rentals in luxury hotspot Golf Course Road increased by 11%, while capital prices saw a mere 3% rise. Likewise, Golf Course Extension Road saw rentals increase by 12% and capital prices by 5% in this period.
- Chennai – luxury rentals in Anna Nagar rose 13% in this period, while capital prices increased by 5%. Similarly, in Kotturpuram, the average monthly rentals rose by 14% while capital prices rose by 4%.
- Hyderabad – the luxury residential hotspot Jubilee Hills saw an avg. monthly rentals appreciate by 15% in 2022 over 2020, while capital prices in this period rose 6%. HITECH City saw a rental price rise of 11%, while capital prices increased by 7%.
- Pune – the rentals in Koregaon Park rose 14% in this period, while capital prices increased by 4%. In Prabhat Road, the average monthly rentals rose by 8% while capital prices rose by just 3%.
- Kolkata – luxury home rentals in Alipore rose 8% in 2022 against 2020, while capital prices increased by 4%. Similarly, in Ballygunge, the average monthly rentals rose by 10% while capital prices rose by 3%.
About the author- Anuj Puri, Chairman – ANAROCK Group