Bengaluru housing market sees capital value growth outpace rental

Bengaluru: Capital values in key micro markets of the top seven cities have grown by 128% between 2021-end and 2024-end, while rental values in many micro markets have appreciated less than the overall capital value growth, according to a report by Anarock out on Monday.

In major cities like Bengaluru, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Hyderabad, average capital values rose higher than rental values during the period.

On the other hand, localities in Pune, Kolkata and Chennai saw the reverse trend with rental values appreciating more than the capital values.

In Bengaluru, Thanisandra Main Road saw capital values rise higher (67%) than rental values (62%). However, on Sarjapur Road, the average monthly rental values rose more (76%) than capital values (63%).

The divergence between capital appreciation and rental growth in these areas indicates that homeownership is becoming more lucrative in key markets where property values are rising faster than rental yields. For investors, this suggests strong long-term returns.