According to the latest Anarock data, with more new supply entering the markets, highly speculative residential rental growth is stalling.
The top seven cities are set to deliver around 5.31 lakh new units in 2024, while in 2023, around 4.35 lakh units were delivered across these cities.
This indicates a 22 percent annual increase in supplies this year if the delivery schedule holds true.
"In India, the second quarter of most years generally sees higher rent growth compared to other quarters due to the start of the new academic year and employment of new employees," said Santosh Kumar, vice chairman, Anarock Group.
This year, the decline in rental values coincides with the entry of substantial new housing supply into these markets, he said.
The average rent for a standard 1,000 sq ft 2-BHK residence in Whitefield, Bengaluru increased by 4 per cent in Q2 from Rs 32,500 per month in Q1 to Rs 35,000 per month in Q2 (till date).
In Q1 2024, the quarterly jump had doubled to 8 per cent as against Q4 2023 for the same flat in Bengaluru.
In Noida Sector 150, the average rent increased by just 4 per cent to Rs 24,000 per month in Q1, from around Rs 25,000 per month in the current quarter. The quarterly growth in the first quarter compared to the fourth quarter of 2023 was 9 percent.
Sohna Road in Gurugram and Dwarka in Delhi saw their respective quarterly rents rise by 3 per cent and 2 per cent in Q2 2024; The report shows that the increases in the first quarter of 2024 were 4 percent and 6 percent respectively.
Chembur and Mulund, key markets in the Mumbai Metropolitan Region (MMR), saw an increase of only 2 per cent in average rents compared to the previous quarter (Q1 2024). In the first quarter of 2024, they increased by more than 4 percent compared to the fourth quarter of 2023.
The top seven cities are set to deliver around 5.31 lakh new units in 2024, while in 2023, around 4.35 lakh units were delivered across these cities.
This indicates a 22 percent annual increase in supplies this year if the delivery schedule holds true.
"In India, the second quarter of most years generally sees higher rent growth compared to other quarters due to the start of the new academic year and employment of new employees," said Santosh Kumar, vice chairman, Anarock Group.
This year, the decline in rental values coincides with the entry of substantial new housing supply into these markets, he said.
The average rent for a standard 1,000 sq ft 2-BHK residence in Whitefield, Bengaluru increased by 4 per cent in Q2 from Rs 32,500 per month in Q1 to Rs 35,000 per month in Q2 (till date).
In Q1 2024, the quarterly jump had doubled to 8 per cent as against Q4 2023 for the same flat in Bengaluru.
In Noida Sector 150, the average rent increased by just 4 per cent to Rs 24,000 per month in Q1, from around Rs 25,000 per month in the current quarter. The quarterly growth in the first quarter compared to the fourth quarter of 2023 was 9 percent.
Sohna Road in Gurugram and Dwarka in Delhi saw their respective quarterly rents rise by 3 per cent and 2 per cent in Q2 2024; The report shows that the increases in the first quarter of 2024 were 4 percent and 6 percent respectively.
Chembur and Mulund, key markets in the Mumbai Metropolitan Region (MMR), saw an increase of only 2 per cent in average rents compared to the previous quarter (Q1 2024). In the first quarter of 2024, they increased by more than 4 percent compared to the fourth quarter of 2023.
