Rents surged by up to 70% in 7 major Indian cities including Delhi: Study

A recent study has revealed that rents in seven major Indian cities have surged as much as 70 per cent in the last six years, with a significant jump in the last two years. The research conducted by property consultants ANAROCK group revealed a shift in homebuyer preferences, with more people preferring to buy larger properties.

The study polled 7,615 respondents between the ages of 24-78 across 14 Indian cities. The findings showed that 52 per cent of homebuyers in Delhi-NCR opted for 3BHK apartments while 38 per cent preferred 2BHKs.

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According to the report, more people now prefer investing in real estate over other assets, with 59 per cent of respondents saying they opt for it over stocks, while 31 per cent preferred investment in stocks.

The report also highlighted the regional buying patterns, with more people in southern India preferring residential plots, when compared to those in northern and western Indian regions.

As per the findings, around one-third of homebuyers in the southern Indian cities of Chennai, Bengaluru and Hyderabad said that they prefer buying residential plots. On the other hand, 70 per cent of buyers in northern and western Indian regions like Delhi-NCR and Mumbai Metropolitan Region (MMR) said they preferred apartments.

More people buy properties for personal use rather than investments, the research found. Out of the investors, 57 per cent buy properties for rental income and 20 per cent buy for reselling after appreciation in value.

Despite the rise in property prices, 51 per cent of respondents preferred larger homes, particularly 3BHKs over smaller houses.

The research also revealed that most homebuyers are dissatisfied. Around 53 per cent said they are not happy with present options that are affordable due to cramped areas, poor construction quality, and bad location accessibility.

The high home loan interest rates, which have crossed nine per cent, are a major reason many potential buyers are discouraged and impact the home-buying decision of over 87 per cent of people.

(With inputs from agencies)