According to NoBroker, the average rental inflation in India has surpassed that in Singapore, London & New York. For instance, the average rental inflation in Singapore has been around 29%. However, the net rental inflation in India is higher than these countries, with some pockets of major cities witnessing an exponential rent increase of 30% and above.

And this is not without reasons.

For example, with offices opening in major cities, the demand for properties around IT parks and office hubs has increased manifold. The supply is still catching up with the increasing demand. This has led to the surge in rental yield.1

The housing rents have seen a massive jump in Bengaluru in the last year. The average rent inflation in the IT capital has been 24%, with rent inflation in certain areas of the city reaching 30%.

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Another major factor for such a huge rise in rentals is people’s preference for gated societies, especially within the city limits and close to office parks. The rental inflation for residential units near offices and within gated societies in Bangalore, for instance, is ranging between 25% and 40%, and approximately 17%-18% overall.2

• 1. Furthermore, cities such as Mumbai and Bangalore, with new metro corridors coming up, have also seen an increase in demand for houses along these metro corridors. With the demand rising, properties in proximity to metro corridors in these cities have witnessed 15%-18% rent inflation.
• 2. “On the contrary, the net rental inflation in other developed nations remains lower than that in India. This is chiefly due to the fact that these countries have still not been able to shift completely to work from the office and their employees are still operating from home or in hybrid model. As a result, the demand for properties in urban centers has not surged to the same extent as in India,” added Garg.