Rentals beat lu xe property prices hands down

NEW DELHI: The growth rate of rentals in the top seven luxury housing markets of the country rose by 17-26% in the past seven years, surpassing the rise in luxury property prices in the same localities during the same period, with average capital prices increasing by 15%, according to an Anarock report.

It noted that 2020 was an outlier year for all rental markets with almost no change in monthly rentals compared to the preceding year.

Anuj Puri, Chairman of Anarock Property Consultants said: "The average rentals for a house of minimum 2,000 square feet size in the top seven cities' key luxury hotspots rose anywhere between 17% to 26% in 2020, as compared to 2014. In the same period, average capital prices in these micro-markets saw a maximum rise of 15%, and some even saw a marginal dip."

Citing Anarock data, Puri said also reveals that from 2014 to 2020, rental prices in the top luxury markets saw consistent year-onyear growth, averaging between 36% annually.

"In contrast, capital appreciation either remained range-bound or varied each year. Some years saw a decent yearly rise, even as high as 7%, while prices dropped by around 5% in other years, particularly in 2017,” he said.