The Rental property sector in Pune has experienced notable expansion in the recent years, mirroring the dynamic nature of the real estate scene in one of India’s rapidly growing cities. Known for its educational institutions and emerging as an IT hub, Pune has become a favoured choice for students, retirees, young professionals, and families. The city’s appeal to a diverse demographic has led to the growth and diversification of the rental housing market.

A Strengthening Rental Housing Market

Pune’s appealing blend of economic prospects and strategically developed infrastructure has positioned it as an attractive choice for both commercial and residential real estate. As one of the leading residential markets in demand, second only to Mumbai, Pune has drawn the attention of prominent developers eager to leverage its ongoing growth. In recent years, the city’s real estate scenario has experienced not only an increase in property acquisitions but also a significant rise in Rental Activity, particularly in the aftermath of the pandemic.

Popular Localities for Rental Housing

Lately, several neighbourhoods have emerged as popular amongst prospective renters through online rental activity, with key micro-markets such as Kothrud, Kharadi, Hadapsar, Wakad, Baner, and Hinjewadi playing a pivotal role in this trend. Interestingly, these locations situated primarily across Pune East and Pune West, along with the city core of Pune Central, boast the highest rental rates in the city, varying between INR 30,000 and INR 40,000 per month.

While Baner, Hinjewadi and Wakad, located towards the western part of the city, command average housing rentals in the range of INR 30,000 per month to INR 35,000 per month, the rentals in Hadapsar and Kharadi in Pune East hover around INR 30,000 per month to INR 35,000 per month. Meanwhile, rental values in Kothrud near Mumbai-Pune Bypass are quoted within INR 25,000 per month to INR 30,000 per month.

Factors Driving Rental Activity

Several factors contribute to the pull of rental activity towards these areas, making them prime choices for individuals seeking accommodation through online platforms. These micro-markets are strategically located, offering proximity to major economic and educational hubs. Kothrud, for instance, is renowned for its educational institutions and cultural richness, attracting students and professionals alike. Kharadi, Hinjewadi and Hadapsar, on the other hand, have witnessed rapid industrial and IT development, making them hotspots for employment opportunities.

Moreover, the well-developed infrastructure in these micro-markets is a significant draw for prospective tenants. Seamless connectivity, well-maintained roads, and the presence of essential amenities contribute to the overall liveability of these localities, making them attractive for those exploring rental options. The convenience factor, coupled with a robust online presence, has led to a heightened interest in these areas among individuals searching for rental properties.

Rental Values See Substantial Increase

Given the fast-paced evolution of Pune into a thriving IT hub, there has been continuous growth in the median monthly rents in Pune since 2017, surpassing the growth observed in property values. The most significant increase took place in 2023, with rents rising by 10–15 percent compared to the previous year.

The resurgence of in-person office work stands out as a crucial factor contributing to this surge, compounded by limited availability of ready-to-move-in properties—a preference shared by both buyers and renters. At the same time, apartments with larger configurations are anticipated to generate increased attention and demand higher rental values, mirroring the growing inclination for additional space in the context of the hybrid working environment.

In conclusion, the convergence of strategic location, robust infrastructure, and economic opportunities has propelled online rental activity in the city. Going forward, the digital landscape for rental transactions is likely to thrive, providing individuals with diverse and convenient options for finding their ideal homes.