High-end gated communities in Mumbai, such as Oberoi Splendor in Andheri East and Lodha Between 2023 and 2024, The Park in Lower Parel had a marginal rise of 4 and 9 percent, respectively. If the industry's stagnation persists, analysts in Bengaluru predict a decline in rental prices.
Local brokers report that rental rates have not increased from the first two quarters of the year, despite the fact that real estate prices are still high in places like the eastern corridor of Whitefield, Koramangala, and BTM Layout.
Local brokers report that the rise in apartment rentals in Bengaluru has slowed down by at least 5–10 percent after a significant spike in the first two quarters of 2024. Experts speculate that this may be because of the city's real estate market's plentiful supply of flats and its quick project completions.
Local brokers report that rental rates have not increased from the first two quarters of the year, despite the fact that real estate prices are still high in places like the eastern corridor of Whitefield, Koramangala, and BTM Layout.
Additionally, investors postponed their plans due to the recent general elections and the impending Union Budget.
Some experts in Bengaluru predict a rental adjustment.
"From February of this month, the rates for two-bedroom flats in areas like Whitefield and Sarjapura have been steady around Rs 30,000–40,000. Very premium homes experienced an increase in rents only in a few locations, and even then, just by Rs 4000-5000," said Kiran Kumar, vice president of Hanu Reddy Realty.
However, local brokers note that in June and July of last year, rents had increased by around 15-20 percent in comparison to the first few quarters of 2023.
"This may be due to new inventories hitting the market and therefore narrowing the gap between supply and demand - which is among the key reasons that had led to this skyrocketing costs in the city," Kumar said.
According to a survey by Cushman and Wakefield, Whitefield accounted for roughly 35% of the releases in Bengaluru during Q1 2024, which saw debuts of about 8,850 units, a 14% YoY rise. However, another research by real estate consultancy ANAROCK said that Bengaluru will have around 51,685 homes produced in 2024, compared to approximately 52,565 units in 2023.
"Even so, we must wait at least a month to see its effects on the industry, even if we observe a stalling of rental growth in several areas of the city. We may anticipate a rental correction if the slowdown persists, which would result in a decline in rental costs in eastern and central Bengaluru, Kumar said.
Mumbai's luxury rental market was also impacted.
Based on data from Zapkey, rental growth in Mumbai's upscale gated communities has slowed to 5–9% in 2024 after a spike of 50–60% increase in the previous two years, 2021–2023.
Due to a significant increase in society redevelopment, which resulted in the owners of these societies relocating on rent, there was a severe scarcity of rental accommodation and a sharp rise in demand for it during the 2021–2023 era in Mumbai. Premium gated communities had even more demand.
However, given that the rate of new redevelopment has slowed down, the rise in rental income in 2024 is more moderate and in line with inflation. According to Zapkey, there is a greater supply of upscale gated communities as a result of the rise in newly completed projects.
In the years 2023–2024, gated communities with high standards, such Oberoi Splendor in Andheri East and Lodha The Park in Lower Parel, had marginal growth of 4 and 9 percent, respectively. Both projects showed increases of around 48 and 55 percent between 2021 and 2023.
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