HYDERABAD: The real estate sector in Hyderabad has been witnessing a substantial increase in rental rates, continuing a trend that began in 2022. This surge in rentals can be attributed to a combination of factors, including heightened demand, limited supply, and evolving consumer preferences.
As professionals return to their workplaces in the post-pandemic era, the demand for rental housing has surged, resulting in a rise in rental rates. A noticeable trend in various cities is a significant percentage of tenants seeking more spacious accommodations.
According to a survey conducted by No Broker, residents have reported an increase in their rental budgets, likely in response to rising rents, changing living preferences, and overall economic recovery. Notably, residents in Bangalore and Hyderabad have experienced more significant increases in their rental budgets.
Due to the scarcity of properties within gated communities and the high cost of rentals, a significant portion of respondents in Chennai and Hyderabad have opted for standalone buildings, which are often more affordable and offer more space compared to apartments within gated complexes.
From renting to buying
The survey also revealed that as monthly rentals approach home loan EMI amounts, 65 per cent of tenants are considering purchasing property this year. This reflects growing confidence in the stability and potential growth of the real estate market.
Technological advancements provided by real estate portals have significantly reduced the time required to rent out a property. These platforms offer faster resolutions, enhanced safety measures, transparency, and direct connections between landlords and tenants without the involvement of brokers.
Factors behind rent hike
In addition to increased demand, more than 24 per cent of landlords in all cities have raised rents to compensate for lost income during the pandemic period. Notably, Hyderabad and Chennai have shown the highest percentage of such rent increases.
Resale units demand rise
Ready-to-move-in homes are the preferred choice for the majority of home seekers. However, due to the scarcity of new primary residential units, resale houses have become a popular option among home buyers.
The stock of ready-to-move-in houses has dwindled since the onset of the pandemic, as construction activity temporarily halted and supply struggled to meet demand.
Resale properties are often located in well-established neighbourhoods with existing amenities, infrastructure, and well-developed social amenities like schools, parks, shopping centres, and healthcare facilities, making them a convenient choice. Additionally, many resale properties come furnished with cabinets and cupboards, reducing the stress of interior setup for buyers.