The dream of a stable home is fading for many in India as the nation grapples with a severe rent crisis. House rents, stagnant during the pandemic, surged since mid-2023, with landlords in various cities hiking rents by up to 50 percent annually, far exceeding the typical 10 percent increment. What fuels this housing rent crisis wreaking havoc on lives?
Data from property consultancy firm ANAROCK Group reveals a startling 4-9 percent increase in housing rent within just the first three months of 2024. “This significant rise, typically seen over a year, is noteworthy,” remarked Santhosh Kumar, Vice-Chairman of ANAROCK Group. The spike translates to a staggering four-fold surge in house rents within a year in several cities.
“Considering the usual 10 percent annual increase, this 30-40 percent surge is substantial. Such sudden increments also strain tenants who haven’t seen a rent hike in years,” noted Manju Yagnik, Vice-Chairperson of Nahar Group and Senior Vice-President of NAREDCO- Maharashtra.
Ayushi Ashar, from Ashar Group & Member of the Managing Committee of MCHI-CREDAI, provided insights into housing rent trends in cities like Mumbai, Noida, and Bengaluru. “In Mumbai, for instance, the average monthly rent for a two-bedroom apartment surged to Rs 45,000 in the first quarter of 2024, marking a staggering 30 percent rise from pre-pandemic levels,” she revealed. “Similarly, Noida and Bengaluru saw significant spikes, with average rents reaching Rs 32,000 and Rs 38,000 per month, reflecting increases of 25 percent and 22 percent respectively since 2022,” she added.
This surge has inflicted financial and mental stress on millions of young working professionals renting homes in these cities.
Suraj Pandey, a media professional in Noida, shared his ordeal, echoing the sentiment of many. A sudden demand for higher rent left him financially vulnerable, especially while dealing with a health emergency. “I’ve been in my apartment since 2018. After 2020, the landlord didn’t raise the rent until December 2023 when it suddenly increased from Rs 20,000 to Rs 27,300 per month. But what truly caught me off guard was the request for a fresh deposit of Rs 33,500, bringing the total to Rs 50,000,” he lamented.
The rent crisis is forcing people to compromise on preferred locations and housing standards. Shikhar Mishra, a Gurugram resident, embarked on a two-month house-hunting journey, settling for an unfurnished flat due to exorbitant rent demands. “What should have been a 15–20-day flat hunt turned into two months. I got a place in November 2022 but had to compromise,” he shared.
The rent crisis is also forcing people to reconsider their professional careers and preferred cities. Sanjay Jaiswal, an engineer professional, saw his rent in Bengaluru’s Whitefield area surge by Rs 20,000 last year, compelling him to shift to Gurugram. “In Whitefield, the commute was a mess, dining was expensive, and so were cleaning services. Now, we pay Rs 49,000 in one of the best areas of Gurugram,” he revealed.
While the surge in India’s property market bodes well for the economy, it’s pushing young professionals into a nightmarish cycle of stress and financial distress, highlighting the widening gap between ambition and affordability in the country.
