Housing rents up 25-30% in major cities since 2019: Report

Housing rents have surged by a substantial 25–30% in top micro-markets within major cities since 2019, according to Housing.com.

While property prices in top cities saw a 15–20% growth compared to pre-pandemic levels of 2019, average monthly asking rents skyrocketed by 25–30%, with certain key localities in service sector dominant cities witnessing significant rent spikes exceeding 30% during the same period.

“Post-pandemic, there has been a sharp revival in housing demand, both for buying and renting purposes. The housing market has seen price appreciation in the last two years after almost a decade of stagnation. The average price rise has been modest at a city level, but there have been sharp rise in some major locations of top cities,” said Dhruv Agarwala, Group CEO, Housing.com.


Housing.com has also computed the price-to-rent ratio to compare the rental returns in India’s key housing market with major global cities. The price-to-rent ratio is determined by dividing the median property value by the median annual rent price within a specific geographical area.

Lower price-to-rent ratio means higher rental yield or return on investment for property owners. This ratio helps in evaluating the comparative affordability of renting versus purchasing a property.

“Rental returns in India historically trailed global counterparts due to factors like higher interest rates and acquisition costs. However, post-pandemic dynamics, including rising property values, affordability challenges for potential buyers, and a limited supply of ready inventory, has sparked a significant surge in rental demand,” said Ankita Sood, Head of Research at Housing.com.

Looking ahead, with a fresh ready supply set to hit the market only in the next 2–3 years, the company expects the momentum in rental demand to persist.