Pune: While several major cities in India have witnessed higher capital appreciation than rental growth, Pune's real estate market has shown a reverse trend, with rental values rising faster than property prices in key micro-markets.
According to the latest ANAROCK Research, Hinjewadi and Wagholi—two of Pune’s prominent residential hubs—saw rental values appreciate by 57% and 65%, respectively, between 2021 and 2024. However, capital appreciation in these areas was significantly lower at just 37%.
Rental Market Surges in Pune
The rising demand for rental housing in Pune is driven by factors such as:
Booming IT and manufacturing sectors, attracting a steady influx of working professionals.
Increased preference for renting over buying, especially among young professionals and students.
High property prices, making renting a more feasible option in some areas.
This trend has been particularly evident in Hinjewadi, Pune’s IT hub, where rental demand has surged due to the presence of major tech parks. A 1,000 sq. ft. 2BHK apartment in Hinjewadi saw monthly rents jump from ₹17,800 in 2021 to ₹28,000 in 2024, a 57% increase. Meanwhile, capital values in the area rose by just 37%, from ₹5,710 per sq. ft. to ₹7,800 per sq. ft.
Similarly, Wagholi, a growing residential locality known for its affordability and connectivity to business hubs, experienced a 65% surge in rental values over three years, while property prices appreciated at a comparatively lower rate of 37%.
Pune vs. Other Cities: A Different Real Estate Story
Unlike Pune, cities like Noida, Hyderabad, and Mumbai saw capital values rising at a much faster pace than rentals. For instance, in Noida’s Sector-150, capital appreciation stood at a massive 128%, while rentals increased by only 66%. Similarly, Hyderabad’s Gachibowli and HITECH City recorded capital value growth of 78% and 62%, respectively, surpassing rental appreciation.
However, Pune’s market dynamics favor rental investors, as rental yields continue to improve with the city’s growing population and commercial expansion.
Investment Takeaways: Buy or Rent in Pune?
For homebuyers and investors, Pune’s rental market offers attractive rental yields and steady tenant demand, especially in areas like Hinjewadi, Wagholi, and Kharadi. While capital appreciation has been moderate, the rental income potential remains strong.
Anuj Puri says, “Those looking for long-term capital appreciation can target markets with high appreciation, while rental-focused investors should zero in on localities where rents are rising steadily.”