The average monthly rental for premium housing rose 28% YoY in Gurgaon during the first six months of 2023 (H1 2023) due to higher demand, limited supply and appreciation in capital values, according to a report by Savills India. Golf Course Extension Road (GCER) and Southern Peripheral Road (SPR) and Golf Course Road saw the highest rise in rentals with 33% and 31% YoY growth, respectively.
As per the report, the average quoted rentals are for 3 BHK and 4 BHK apartments on Golf Course Road and 3 BHK apartments in other micro markets. In H1 2023, Golf Course Road commands a monthly average rental of Rs 1,95,941, while the average rent at GCER and SPR is Rs 1,01,000 a month. The data showed that average rent in New Gurgaon is Rs 47,100 and in Dwarka Expressway is Rs 40,071 per month.
The report notes that the pandemic brought about a major shift in housing preferences, with many individuals opting to upgrade to larger properties with better amenities. This led to an increased demand for 3-4 BHK homes and higher rentals. With limited new launches in the luxury segment, the existing supply of luxury properties experienced a notable spike in rentals.
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 in H1 2023. 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.
