Home rental prices on the rise as employees head back to office

If you're planning to take a house on rent, or even renew your rental agreement, chances are you'll have to shell out more!

The residential rental market has seen a big spike in demand and as a result rental prices. As per a survey by Anarock property consultants, with return-to-office, rental demand has seen a spike with prices in the top 7 cities rising upto 23% since 2019.

"As things stand now, rental demand will continue to head northward in 2023. The surge in rentals is driven by resurging demand on the back of most offices re-establishing normal in-office work," says Anuj Puri, Chairman, Anarock.

With both property prices and interest rates on the rise, the overall cost of property acquisition is increasing, and as a result people are deferring their property purchase decisions and choosing to rent instead.

As per Anarock's survey, here are are how rental prices have moved in some of the more popular areas:

• Noida’s Sector-150 sees 23% growth in monthly rentals. 1,000 sq. ft. 2 BHK home has gone up from Rs 15,500 per month in 2019 to Rs 19,000 per month in 2022.
• Pune’s Hinjewadi & Wagholi saw avg. monthly rentals go up by 20% & 21% respectively in this period.
• Bengaluru’s Whitefield recorded 18% rental growth from Rs 19,000/month in 2019 to INR 22,500/month in 2022.
• Top luxury housing markets saw up to 18% growth for homes of over 2,000 sq. ft.; NCR’s Golf Course Extension saw rentals rising from Rs 49,000 per month in 2019 to Rs 58,000 per month in 2022.