Rental Rates for Luxury Apartments in Gurugram Climb 28% YoY in H1 2023: Savills Study

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    The first half of this year saw a substantial 28% year-on-year surge in average monthly rents for premium apartments in Gurugram, according to a report. The growth is attributed to heightened demand, limited supply, and an increase in property values.

    The report from Savills India reveals that across Gurugram’s various markets, the average rental rates saw a consistent 28% increase compared to the previous year. Particularly noteworthy was the surge along Golf Course Extension Road and Southern Peripheral Road, which experienced an impressive 33% and 31% year-on-year growth, respectively. The data includes average quoted rentals for 3BHK and 4BHK apartments on Golf Course Road, as well as 3-BHK apartments in other micro markets.

    Golf Course Road boasted the highest average monthly rent at Rs 1,95,941, closely followed by Golf Course Extension Road and Southern Peripheral Road, both commanding an average of Rs 1,01,000 per month. The study also revealed average monthly rents of Rs 47,100 for New Gurugram and Rs 40,071 on the Dwarka Expressway.

    The rental surge has been fueled by a consistent influx of migrating working professionals to Gurugram and Noida. This demographic prefers renting over buying, a trend that was further amplified by the housing preferences shift triggered by the pandemic. The demand for larger residences with premium amenities, particularly 3-4 BHK homes, has significantly contributed to the rise in rental rates.

    Market experts noted a significant increase in monthly rents for prominent projects such as ‘The Aralias’ and ‘The Magnolias’ on Golf Course Road. ‘The Aralias’ experienced a surge from Rs 2.6-2.7 lakh pre-pandemic to Rs 4.5-4.75 lakh in monthly rent. Meanwhile, ‘The Magnolias’ saw rents increase to Rs 5.5-6 lakh for unfurnished units and Rs 6.5-7 lakh for furnished ones. Similar trends were observed in other upscale projects like ‘The Camellias’, with monthly rents ranging from Rs 8-9 lakh for unfurnished apartments to Rs 11-12 lakh for furnished residences.

    The return to normalcy after the second wave of the COVID-19 pandemic has also contributed to an overall escalation in both capital values and rental rates across Delhi-NCR. This trend is particularly prominent in Gurugram due to improved infrastructure and the establishment of global corporate headquarters, attracting a diverse talent pool, including senior management and foreign expatriates. The increased demand has consequently led to an overall surge in both capital values and rental prices, notably within the upscale property segment.

    The preference for managed and serviced accommodations among expatriates has also fueled the willingness to pay a premium for the convenience they offer. The heightened demand for luxury properties has played a pivotal role in driving up both rental rates and capital values in Gurugram.

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