HYDERABAD: Much like property prices, residential rentals in Hyderabad’s tech corridor seem to be unrelenting. According to recent market reports, the city’s western region has witnessed a 10% to 15% higher than usual jump in rents with 2BHKs now available for as much as 40,000 a month. In case of 3BHKs, it has anywhere between 50,000 and 70,000, excluding maintenance.
Over 60,000 for 3BHKs
For instance, a 3BHK in Khajaguda, which used to cost 65,000 a month has now increased to 70,000 excluding maintenance charges. Similarly, gated communities in Gachibowli and Nanakramguda are charging upwards of 60,000 for 3BHKs.
While standalone apartments in Hyderabad’s IT corridor are slightly cheaper, they too come with an asking price of 40,000 to 50,000 (for 3BHK) and 30,000 to 35,000 (for 2 BHK).
Developers attribute it to a multiple reasons: Rush of IT professionals seeking accommodations near their workplaces, steady influx of new workforce and increased interest rates on home loans.
“High concentration of IT firms, infrastructure with wide roads, schools, shopping centres, healthcare and entertainment venues are pushing the rental demand. Also, property owners have upgraded their units to meet the demands of young professionals, offering furnished flats with modern amenities,” said Ramachandra Reddy, executive member CREDAI national. Tenants say that the climbing costs are putting pressure on purses.
“In areas surrounding Hi-Tec City the annual increase in rents range between 3,000 and 5,000. I got a 2 BHK flat in TNGOs Colony, Gachibowli in 2023 at 25,000, but the owner has now raised it to 35,000. But despite the steep rental costs in the locality, I chose to continue staying here to save on commute time and avoid traffic congestion,” said P Bhuvan Chandra, a financial analyst.
Stagnant in east & south
In comparison, Chandra said that his co-workers in Uppal pay just about 25,000 to 30,000 for a 3BHK, with their rents remaining stable over the last few quarters.
Realtors admit that the scenario in Hyderabad’s east and south pockets are starkly different. This stability stems from tenants’ resistance to the standard 10% increase in rent, given the availability of cheaper options not very far away. This is not the case with the western corridor.
An example is the shift of tenants from LB Nagar, where a 3 BHK flat previously cost 30,000, to areas like Hayatnagar and Vanasthalipuram, as similar accommodations are available for 25,000. “I resided in an LB Nagar flat paying 30,000 as rent. The landlord recently raised it to 33,000, which was beyond my budget. Fortunately, I found a comparable 3 BHK flat in Vanasthalipuram for 24,000, merely 5 km from my previous residence, within a week’s search,” said Raghu Vamshi, relationship manager in a private bank.
“The rental market along the IT hub remains robust, while areas stretching from Secunderabad to Uppal and LB Nagar, show flat or declining rental rates,” said K Mahesh, the city-based real estate agent. He, however, added that landlords and tenants on both sides of the city are now adopting flexible payment arrangements, where instead of collecting two months’ advance upfront, they are agreeing to split it across two consecutive months, with one month’s rent and advance paid in each month. “This approach helps ensure tenant retention,” he said.
