According to a recent study conducted by real estate consultancy group Anarock, Ballygunge has surpassed Alipore as the most desirable luxury residential market in the city, commanding a 49% higher rental rate than its counterpart. Both neighborhoods have experienced a rise in rental prices following the Covid-19 pandemic, with Ballygunge witnessing a 10% increase and Alipore experiencing an 8% increase.

Prior to the pandemic, the average two-year luxury rental increase was between 5% and 7%. However, unlike commercial real estate rentals, which declined significantly during the lockdown, the luxury residential market thrived as people spent more time at home and realized the need for additional space due to concepts like remote work and remote learning.

Anuj Puri, the chairman of Anarock Group, stated, “Prominent luxury housing markets have seen double-digit growth in rentals over the past two years. Luxury neighborhoods in Kolkata have experienced an 8%-10% increase in rental prices, indicating an upswing after the pandemic.”

While the demand for luxury properties has increased, the shortage of supply has led to monthly rental price hikes. Puri explained, “Post-Covid, tenants have shown a preference for larger homes. The luxury residential market has seen a positive trend after the pandemic, with its overall sales share increasing to around 14% in the first half of 2022. There is also a high demand for luxury rental properties, resulting in an increase in average monthly rentals.”

In addition to Alipore and Ballygunge, micro-markets like EM Bypass and Salt Lake have experienced even higher rental price appreciation, with both areas seeing a 13% increase in rentals over the past two years.

Anarock Group Kolkata head Soumendu Chatterjee provided specific examples, stating, “For a standard 2,000 sq ft house in Ballygunge, the rent has increased by 10% in the last two years, from Rs 88,000 to Rs 97,000. In Alipore, the growth during this period was from Rs 60,000 to Rs 65,000.” Meanwhile, areas like EM Bypass and Salt Lake saw a 13% rise in rental prices over the same period.

Among other cities, Worli in Mumbai experienced the highest rental growth, with a 18% increase in the rental price of luxury homes measuring at least 2,000 sq ft, from Rs 2 lakh per month in 2020 to Rs 2.5 lakh in 2022. Rajaji Nagar in Bengaluru witnessed a 16% jump during the same period, with rental prices rising from Rs 56,000 in 2020 to Rs 65,000 in 2022.