Indian Housing Market: Evolving Trends in Rent vs. Buy Dilemma

The Indian housing market sees evolving trends in the rent vs. buy conundrum as capital values surge in major cities. ANAROCK data highlights significant capital appreciation in some areas, while rental growth falls behind. This divergence underscores strategic planning for investors seeking long-term gains in key urban localities.

As the Indian housing market undergoes continuous changes, the choice between renting or buying remains a dynamic decision. The latest data from ANAROCK reveals that capital values in the nation's top seven cities have witnessed a substantial increase of 128% from 2021 to 2024. In contrast, rental values have not kept pace, rising at a slower rate in many micro markets.

An analysis by ANAROCK of major micro markets across cities such as Bengaluru, Mumbai, Delhi NCR, and Hyderabad indicates a more robust growth in capital values compared to rental values from the end of 2021 to the end of 2024. Anuj Puri, ANAROCK Group's Chairman, remarked that in Pune, Kolkata, and Chennai, the opposite trend prevailed with rental values appreciating at a faster rate than capital values.

Among the top-performing markets, NCR's Sohna Road capital values surged by 59% outpacing the 47% growth in rental values. Noida's Sector-150 exhibited a particularly striking capital appreciation of 128%, while rentals grew by 66% in the same period. These statistics highlight a significant divergence between market dynamics, particularly in places like Hyderabad's HITECH City and Gachibowli, and Mumbai's Chembur and Mulund.

(With inputs from agencies.)