Hyderabad’s real estate market: Buying is a better option or renting?

According to Anarock Research, rental values in Hyderabad's key micro-markets have increased substantially between the end of 2021 and H1 2024.

Hyderabad: The debate over whether to buy or rent a home in Hyderabad is intensifying as rental values surge, with some areas seeing significant hikes.

According to Anarock Research, rental values in Hyderabad’s key micro-markets have increased substantially between the end of 2021 and H1 2024. Notably, areas like Gachibowli and Hitec City saw rental values rise by 50 per cent and 46 per cent, respectively, while capital values appreciated by 70 per cent and 59 per cent.

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Dr. Prashant Thakur, Regional Director & Head, Research – Anarock Group, said Data analysis of key micro-markets in the top seven cities shows that in cities like Bengaluru, Pune, Kolkata and Chennai, average residential rental values rose more than the capital values between 2021-end to H1 2024.

“However, areas in NCR, MMR and Hyderabad saw the reverse trend – capital values appreciated more than the rental values. Such data can be a key parameter – though by no means the only one – used to determine whether it is more advantageous to buy a property or opt for renting,” he said.

For example, in Hitec City, the average monthly rent rose from Rs 23,000 in 2021 to Rs 33,500 by mid-2024, while capital values grew from Rs 5,800 to Rs 9,200 per square foot during the same period.

Similarly, Gachibowli saw rents jump from Rs 22,000 to Rs 33,000, while capital values skyrocketed from Rs 5,010 to Rs 8,500 per square foot.