Rentals nationwide had taken a nose dive in 2020 and 2021 as the Covid-induced lockdown saw mass reverse workforce migration. (Representational) Pune’s rental market saw a remarkable appreciation in 2022 and realtors are confident of the trend continuing this year.
Property consultant Anarock, in its report published last week, talked about a 20 and 21 per cent increase in monthly rental for the micro markets of Wagholi and Hinjewadi, respectively.
Rentals nationwide had taken a nose dive in 2020 and 2021 as the Covid-induced lockdown saw mass reverse workforce migration. As work from home became the new normal, most salaried families and individuals decided to return to their hometowns instead of staying in rental places. Pune was no exception, with blue and white-collared workers deciding to return home.
However, the trend has changed as Covid subsided. Most companies have gone for a hybrid work culture with employees logging in to work remotely and from the office.
Some of the major IT companies that constitute a chunk of Pune’s white-collared workforce have even asked employees to return to their offices, which has seen rental markets getting much-needed traction.
Anarock’s survey showed that in 2022, nationally, the average rental for a 1,000 sqft 2-BHK flat has gone up by 23 per cent from the rents of 2019. In Pune, the average rent of such a unit in Hinjewadi is Rs 21,000/month, compared to Rs 17,500 in 2019. Similarly, the rent in Wagholi at present is Rs 17,000. It was Rs 14,000 in 2019,
Anuj Puri, chairman of the Anarock Group, attributed this to offices calling their employees back. “With more companies calling their employees back to the office, including in the hybrid mode, rental demand is rising across the seven top cities after plummeting during the two worst Covid-19 waves. We still recall the death knell being rung for the rental market in 2020.”
As things stand now, rental demand will continue to head northward in 2023. “The surge in rentals is driven by resurging demand on the back of most offices re-establishing normal in-office work,” said Puri.
“Employees returning from their hometowns or other parts of the city tend to rent homes for at least the short-term, often to consider purchases at a later stage. As both property prices and interest rates continue to rise, the overall cost of property acquisition increases, leading to an increase in deferred property purchase decisions. Resultantly, they will seek rental homes,” he added.
Also, with the new academic session beginning, more parents will look to locate their family close to schools, leading to further hikes in rental demand in the coming months.