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Rent or buy a house in 2025? Here's the latest data to help you decide
5 min read | Updated on March 17, 2025, 18:23 IST
SUMMARY
The ultimate answer to the rent vs buy question might depend on the location. Data shows in several micromarkets across the top seven cities, property prices have appreciated faster than rental income between 2021-end and 2024-end. However, there have been a few exceptions to this trend where monthly rentals have increased faster than property prices in this duration.
For homebuyers, it is important to weigh property price trends. | Representational image source: Shutterstock
Confused about whether to rent or buy a house property in 2025? The latest data from Anarock Research shows that the ultimate answer to your confusion might depend on the location where you are planning to either rent or buy a residential property.
Data shows that in several micromarkets across the top seven cities, property prices have appreciated faster than rental income between 2021-end and 2024-end. However, there have been a few exceptions to this trend where monthly rentals have increased faster than property prices in this duration.
“An analysis of the key micro markets in the top seven cities shows that in major cities like Bengaluru, Mumbai Metropolitan Region (MMR), Delhi-NCR and Hyderabad, average capital values rose higher than rental values between 2021-end and 2024-end. On the other hand, localities in Pune, Kolkata and Chennai saw the reverse trend – rental values appreciated more than the capital values,” said Anuj Puri, chairman, Anarock Group.
| Cities | Micro markets | 2021-end | 2024-end | % Change |
|---|---|---|---|---|
| Bengaluru | Sarjapur Rd | 21,000 | 36,900 | 76% |
| Thanisandra Main Rd | 20,500 | 33,200 | 62% | |
| Hyderabad | HITECH City | 23,000 | 35,400 | 54% |
| Gachibowli | 22,000 | 35,700 | 62% | |
| Pune | Hinjewadi | 17,800 | 28,000 | 57% |
| Wagholi | 14,200 | 23,500 | 65% | |
| NCR | Sohna Road | 25,000 | 36,700 | 47% |
| Sector-150 (Noida) | 16,000 | 26,600 | 66% | |
| MMR | Chembur | 46,000 | 65,500 | 42% |
| Mulund | 39,500 | 51,000 | 29% | |
| Kolkata | EM Bypass | 19,000 | 28,600 | 51% |
| Rajarhat | 15,000 | 20,550 | 37% | |
| Chennai | Perambur | 16,200 | 22,100 | 36% |
| Pallavaram | 14,900 | 21,500 | 44% |
Source: Anarock Research
| Cities | Micro Markets | 2021-end | 2024-end | % Change |
|---|---|---|---|---|
| Bengaluru | Sarjapur Rd | 6,050 | 9,850 | 63% |
| Thanisandra Main Rd | 5,345 | 8,900 | 67% | |
| Hyderabad | HITECH City | 5,753 | 9,300 | 62% |
| Gachibowli | 5,010 | 8,900 | 78% | |
| Pune | Hinjewadi | 5,710 | 7,800 | 37% |
| Wagholi | 4,951 | 6,800 | 37% | |
| NCR | Sohna Road | 6,600 | 10,500 | 59% |
| Sector-150 (Noida) | 5,700 | 13,000 | 128% | |
| MMR | Chembur | 18,735 | 27,800 | 48% |
| Mulund | 16,917 | 24,200 | 43% | |
| Kolkata | EM Bypass | 7,000 | 8,350 | 19% |
| Rajarhat | 4,475 | 5,900 | 32% | |
| Chennai | Perambur | 6,350 | 7,800 | 23% |
| Pallavaram | 5,950 | 7,200 | 21% |
Source: Anarock Research
Markets where property price growth outpaced rental value growth
According to the Anarock Research data, following micro-markets of top seven cities have witnessed higher capital appreciation than rental value growth between 2021-end and 2024-end.
Delhi-NCR: Sohna Road saw capital values go up by 59% while rental values rose by 47%. Sector-150 in Noida saw capital values appreciate by a whopping 128% while rental values rose by just 66% in the period.
Mumbai: In Chembur, the capital value growth was 48% while rental appreciation clocked in lower at 42%. In Mulund, rental values rose by just 29% while capital prices went up 43%.
Hyderabad: In HITECH City, rental value growth was 54% and capital appreciation was 62%. In Gachibowli, rental values rose 62% and capital values 78%.
Bengaluru: Thanisandra Main Road saw capital values appreciate more (67%) than average rental values (62%) in the period.
Markets where rental value growth outpaced rental value growth
Several key micro markets in Pune, Kolkata and Chennai saw higher rental values growth than the capital value appreciation between 2021-end to 2024-end.
Pune: Hinjewadi saw rental values appreciate by 57%, while capital values rose by just 37%. In Wagholi, rental value growth was 65% while capital values rose by just 37%.
Kolkata: EM Bypass, rental value appreciation was 51%, while capital values rose by just 19% in this period. In Rajarhat, rental values grew by 37% while capital appreciation was 32%.
Chennai: Pallavaram recorded rental values growth of 44%, while capital values rose by 21%. In Perambur, rental values grew by 36% while capital values rose 23%.
Bengaluru: Sarjapur Road saw average monthly rental values increase more (76%) than capital values (63%).
How to decide?
According to Puri, property investors should factor in location in all their home-buying decisions.
"More than ever, investors must align their strategy along very location-specific lines. 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," Puri said.
For homebuyers, it is extremely important to weigh property price trends against rental growth to understand if buying or renting makes more financial sense in each location," he added.
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