Rents in 7 major Indian cities increased by around 70%: Study
Rents in 7 major Indian cities increased by around 70%
14 Nov 2024
Rents in seven major Indian cities have skyrocketed by as much as 70% in the last six years, with a major spike seen in the last two years, a study by property consultants ANAROCK Group revealed.
The study covered 7,615 respondents aged between 24 and 78 across 14 Indian cities.
In Delhi-NCR, over half (52%) of homebuyers preferred three-bedroom apartments while nearly two-fifths (38%) chose two-bedroom apartments.
Real estate investment outpaces stock market preference
Investment trends
The ANAROCK study also emphasized a shift in investment preferences, with real estate now preferred over other assets like stocks.
Nearly 60% of respondents said they prefer investing in real estate over just 31% who opted for stocks.
This trend was especially strong in southern cities like Chennai, Bengaluru, and Hyderabad where residential plots were the preferred option.
Meanwhile, buyers from northern and western regions like Delhi-NCR and Mumbai largely preferred apartments.
Property purchases for personal use surpass investment buys
Buying motives
The study further revealed that most property purchases are made for personal use and not as an investment.
Among those who do invest in properties, over half (57%) buy them for rental income while a fifth (20%) purchase with the intention of reselling after appreciation in value.
Despite rising property prices, there is a strong preference for larger homes among buyers with 51% favoring three-bedroom apartments over smaller ones.
Homebuyers express dissatisfaction with affordable housing options
Market discontent
The ANAROCK study also revealed a high level of dissatisfaction among homebuyers.
More than half (53%) were unhappy with affordable options citing cramped spaces, poor construction quality, and lack of adequate location accessibility.
High home loan interest rates of over 9% have also deterred many potential buyers. The rates were found to affect home-buying decisions of over 87% of respondents.