Hyderabad: ‘Too Late’ boards are disappearing rapidly. For almost two years, during the Covid pandemic and especially the lockdown phase, these boards were seen hanging in front of apartments and houses in most areas of the city, attracting attention from potential tenants. The early days of the pandemic with complete lockdown (…)
Published date – 5 August 2022, 11:09 pm
Hyderabad: ‘Too Late’ boards are disappearing rapidly. For almost two years, during the Covid pandemic and especially the lockdown phase, these boards were seen hanging in front of apartments and houses in most areas of the city, attracting attention from potential tenants.
A complete lockdown was announced in the early days of the pandemic and was followed by night curfews and restrictions that left the city missing activity for months. With educational institutions closed and offices initially remaining closed and then opting to work from home, many bachelors and families from other cities and towns, who were working from here, had returned to their native places.
This trend of tenants vacating flats/parts during that phase had put many landlords in trouble. For several months, they hung ‘to let’ boards in the premises of their properties, posted the availability of places on various property websites and waited for responses. In the process, rental values also declined and suddenly the rental market shifted in favor of tenants.
However, the trend has begun to change since the beginning of this year. With the re-opening of educational institutions as the academic calendar and workplaces, mainly IT and ITES ones, are slowly starting to get their hustle back, the scene has started to resemble what it used to be.
With the workforce returning to the city, demand for deposits, which were reduced or waived off in some cases in the last two years, has also started to increase, while monthly rents are also being restored. And the same trend has been happening in major cities of the country also.
Magicbricks’ recently released India Rental Housing Update documents this and shows that Indian rental housing demand (search) grew by 29.4 per cent QoQ and 84.4 per cent YoY in Q2 2022. The report further said that the cumulative rental housing supply (listings) in the 13 Indian cities mapped has increased by 3 per cent and 28.1 per cent QoQ.
According to the report, Hyderabad’s residential demand grew by 42 per cent QoQ while supply increased by 9.4 per cent QoQ. Average rents also saw an increase of 14.3 per cent QoQ as a result of rapid reverse migration to the cities for work-related opportunities. Interestingly, the residential market was dominated by 3BHK (45 per cent) and 2BHK (40 per cent).
The report said the reopening of educational institutions and employment centers has led to increased demand for rental housing near schools as employees return to their workplaces at least two to three days a week.
Among the cities mapped for the update, Hyderabad stood third in both rental housing demand and rental housing supply. According to the report, the highest growth in rental housing demand was seen in Bengaluru (54.5 percent), Greater Noida (42.9 percent) and Hyderabad (42.0 percent). Cumulative rental housing supply grew by 3.0 per cent and 28.1 per cent year-on-year, with Chennai (17.4 per cent) at the top, followed by Bengaluru (15.1 per cent) and Hyderabad (9.4 per cent) which saw the maximum growth.
Commenting on the report, Sudhir Pai, CEO, Magicbricks, says, “With the reopening of schools and offices, the workforce and students are moving back from their native cities to metros, leading to an increase in demand for rental homes Has been.” The supply of rental homes is increasing slowly compared to the previous quarter, available vacant homes are decreasing and units are not being replaced quickly by new supply as most of them are being purchased by end users, Not by investors, he said, “However, we expect the growth momentum to continue over the next few quarters.”