Rental growth slows in top Indian cities as housing supply surges

By Vivek Dubey By Vivek Dubey CNBC-TV18.com CNBC-TV18.com Published June 18, 2024 Published June 18, 2024

Top cities in India see rental growth drop to 2-4% quarterly in Q2 2024, a significant decrease from the 4-9% growth in Q1 2024.

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The influx of new housing supply is curbing previously high rental spikes, stabilising rental markets across major cities.

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Bengaluru’s Whitefield sees a 4% rent increase in Q2 2024, down from an 8% rise in Q1 2024, indicating cooling demand.

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Rents in Noida’s Sector 150 increase by 4% in Q2 2024, a slowdown from the 9% hike in Q1 2024, reflecting market stability.

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Top 7 cities expect over 5.31 lakh new housing units in 2024, a 22% increase from 2023, easing pressure on rental prices.

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Mumbai Metropolitan Region (MMR) to see 1.61 lakh new units in 2024, helping to moderate rent increases in the area.

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NCR will deliver approximately 1.44 lakh units in 2024, up from 1.14 lakh in 2023, contributing to rental price stabilisation.

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Pune is set to complete around 97,000 units in 2024, a significant increase from 65,000 units in 2023, impacting rental growth.

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Kolkata's rental market stabilises with 25,220 new units projected for 2024, up slightly from 25,075 units in 2023.

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Chennai anticipates 17,580 new units in 2024, up from 14,125 in 2023, helping to slow down rental price hikes in the city.

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Rental growth slows in top Indian cities as housing supply surges

Top cities in India see rental growth drop to 2-4% quarterly in Q2 2024, a significant decrease from the 4-9% growth in Q1 2024.

Rental Growth Halved

Rental Growth Halved

The influx of new housing supply is curbing previously high rental spikes, stabilising rental markets across major cities.

Supply Surge Cools Rents

Supply Surge Cools Rents

Bengaluru’s Whitefield sees a 4% rent increase in Q2 2024, down from an 8% rise in Q1 2024, indicating cooling demand.

Bengaluru’s Steady Rise

Bengaluru’s Steady Rise

Rents in Noida’s Sector 150 increase by 4% in Q2 2024, a slowdown from the 9% hike in Q1 2024, reflecting market stability.

Noida’s Sector 150 Trends

Noida’s Sector 150 Trends

Top 7 cities expect over 5.31 lakh new housing units in 2024, a 22% increase from 2023, easing pressure on rental prices.

Massive New Supply

Massive New Supply

Mumbai Metropolitan Region (MMR) to see 1.61 lakh new units in 2024, helping to moderate rent increases in the area.

MMR’s Major Completions

MMR’s Major Completions

NCR will deliver approximately 1.44 lakh units in 2024, up from 1.14 lakh in 2023, contributing to rental price stabilisation.

NCR’s New Units

NCR’s New Units

Pune is set to complete around 97,000 units in 2024, a significant increase from 65,000 units in 2023, impacting rental growth.

Pune’s Growing Supply

Pune’s Growing Supply

Kolkata's rental market stabilises with 25,220 new units projected for 2024, up slightly from 25,075 units in 2023.

Kolkata’s Consistent Supply

Kolkata’s Consistent Supply

Chennai anticipates 17,580 new units in 2024, up from 14,125 in 2023, helping to slow down rental price hikes in the city.

Chennai’s Rising Units

Chennai’s Rising Units

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