When you think of high-rent cities, what comes to mind? For many, Mumbai might be the first city that comes to mind. However, according to a 2024 report by the real estate platform Magicbricks, Gurugram has become the city with the largest rent increase. While Mumbai, which previously had the highest rentals, is still seeing a steady climb, other cities like Noida, Gurugram, Pune, and Bengaluru have also seen sharp increases in rental prices.
Rents for homes have increased by as much as 30% in the last three years. The market is expected to stabilise in 2025, but this would only be feasible if supply and demand remain balanced.
According to the AajTak Hindi report, the nationwide trend of rising housing rents has seen the largest spike in Sector-150 in Noida, with rents jumping by 22%. The SMR area of Pune has increased by 12.2%, while Bengaluru, Hyderabad, and Gurugram have seen increases of 16%. Mumbai has seen the lowest increase, with rents going up by less than 10%.
However, what is the real cause of the increasing rents? Experts have reported that the demand for homes in cities has significantly increased since the COVID-19 pandemic, according to the AajTak Hindi report. Rental prices have increased as a result of the construction of new structures and contemporary housing societies. Rent is also heavily influenced by elements like design and location. Based on their investments, landlords are increasing rents, and the supply-demand mismatch, property taxes, and inflation continue to be the main causes of this increase.
The Household Consumption Expenditure Survey 2023–24 reports that rent has been steadily increasing, accounting for 6.58% of total household expenses since 1999 (4.46%). Rental rates have been steadily rising, according to every poll. Rent takes up a significant amount of an average earner’s salary.
The growing rental rates may further stress the average person financially if a tangible remedy is not found quickly. In urban areas, renting a home might become much more difficult. Furthermore, becoming a homeowner has already become a more challenging goal due to the three-year increase in real estate costs.
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