To buy or to rent? It has been one of the central questions in the Indian real estate sector for years now. On Wednesday, real estate consultancy Anarock released a research trying to do away with the dilemma. The data in the research showed that rental values in key micro-markets of the top 7 cities in India have gone up by up to 72 per cent between 2021-end and June 2024. However, capital values saw lower growth. In key markets in Bengaluru, Pune, Kolkata and Chennai, average residential rental values rose more than the capital values between 2021-end to June 2024.

However, areas in NCR, MMR and Hyderabad saw the reverse trend – capital values appreciated more than the rental values. Rents rose over 50 percent in areas like Bengaluru’s Sarjapur Road, Pune’s Hinjewadi, and Hyderabad’s Gachibowli. On the other hand, capital growth was high in areas like Noida’s Sector 150 and Mumbai’s Chembur. “Such data can be a key parameter – though by no means the only one – used to determine whether it is more advantageous to buy a property or opt for renting,” said Prashant Thakur, regional director and head, research at Anarock Group. Anarock said that not every individual who migrates to a certain city for job opportunities intends to put down permanent roots there. Others may be drawn to the city’s urban ethos and decide to make it their home, while yet others may perceive value in investing in a property there regardless of whether they will settle down there or not.

The decision to relocate is a complex one, influenced by a variety of factors. These factors can be broadly categorized into personal, financial, and professional. Personal factors include lifestyle preferences, family size, and personal values. Financial factors include income, cost of living, and access to financial resources.

Also Read | Property prices in top 3 global cities jump in double digits “The sentiment favouring homeownership is also supported by relatively cheaper home loan interest rates currently averaging between 8.75 per cent and 9.5 per cent,” it said. Thakur said, “There is a lot to unpack when deciding whether to buy or rent a home, and investment rationale alone will not guide all such decisions.”