Pune's key real estate micro-markets have seen significant rental growth between 2021-end and H1 2024, outpacing capital appreciation.
According to ANAROCK Research, areas like Hinjewadi and Wagholi have witnessed sharp rental hikes, positioning Pune as a pivotal market in the ongoing rent vs. buy debate.
In Pune’s Hinjewadi, rental values rose by 52%, while capital values increased by just 31%. Similarly, Wagholi saw an impressive rental growth of 60%, far surpassing its 30% rise in capital values. These trends indicate a strong rental market, driven by demand from professionals working in IT hubs like Hinjewadi and other expanding tech corridors.
Experts suggest this rental surge in Pune highlights a shift in housing dynamics where renting becomes a more attractive option in the short term, especially for migrants or those looking for flexibility.
With the increased demand for rental properties, potential buyers might hesitate to invest immediately in the market, preferring to rent until more favorable purchase conditions emerge.
Dr. Prashant Thakur, Regional Director & Head, Research - ANAROCK Group, says, "Data analysis of key micro-markets in the top 7 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."
Pune’s ongoing urban expansion and the influx of professionals from other cities have sustained demand for both rentals and capital investments.
However, with the rental market clearly outperforming capital appreciation in many areas, the question of whether to rent or buy has become more nuanced for Pune residents and investors alike.
