Forget buying a home, securing a rental apartment in Hyderabad has turned into a major financial strain for residents. Over the past year, the city has witnessed a sharp 20% surge in rental prices, with the residential pockets in and around the bustling IT corridor bearing the brunt of this steep hike.
Sky-High Rents in Prime IT Corridors
According to market sources and tenants, the monthly average rent in gated communities across key areas like Madhapur, Nanakramguda, Gachibowli, Nallagandla, Khajaguda, and Tellapur now ranges between Rs 40,000 for a 2BHK and Rs 80,000 for a 3BHK. Premium properties in these zones are commanding rents as high as Rs 1 lakh per month. While standalone apartments offer slightly lower rates, they are still expensive, with 3BHKs averaging over Rs 50,000 and 2BHKs between Rs 30,000 to Rs 35,000.
The upward trajectory in house rents began after the Covid-19 pandemic and shows no signs of slowing. The burden is compounded by rising maintenance charges. In many high-rise communities in Tellapur, Nallagandla, and Narsingi, maintenance costs have increased from around Rs 3 per square foot to Rs 4 per square foot in the last 18 months.
"Since I moved into my 3BHK flat, the rent has almost doubled. I paid Rs 20,000 in 2022, and it's now Rs 35,000. With maintenance, my monthly housing cost crossed Rs 40,000," shared T Kiranmai, an IT professional from Tellapur. Faced with high expenses, Kiranmai recently downsized to a 2.5 BHK for Rs 30,000, a unit whose rent had already increased from Rs 23,000 in a short period.
Demand Outstrips Supply, Forcing Relocations
Realtors point to a heavy inflow of employees, especially IT professionals, coupled with soaring property prices and high home loan interest rates as the primary drivers. Many potential buyers are postponing purchases and staying in the rental market, further tightening supply. N Praveen, President of the Telangana Realtors Association, notes that 'To-Let' boards have virtually disappeared, forcing tenants to rely on brokers and online portals.
"This is no longer limited to the western corridor—demand is high across the city. With high job inflow and limited supply, rental values are only expected to rise further," Praveen stated.
The escalating costs are pushing residents to relocate to cheaper areas. J Karthik, a resident of Lakshmi Nagar, Manikonda, had to move after his landlord increased the 3BHK rent from Rs 30,000 to Rs 40,000 at once. However, even in his new apartment, the rent jumped from Rs 22,000 to Rs 30,000.
The Ripple Effect to Peripheral Areas
The rental spike has now spread beyond the traditional IT belt. Areas like Uppal, Kompally, and Hayath Nagar, once considered affordable alternatives, are also experiencing significant increases. As tenants move farther from the city core in search of relief, demand in these peripheral locations rises, pushing their prices upward as well.
"We moved to Uppal thinking it would be affordable, but within a year, the rent went up by Rs 5,000. The owner increases it by Rs 5,000 to Rs 7,000 every year. Almost half of my income now goes towards rent," lamented C Madhukar Rao, a resident of Kompally.
Another tenant, Vijay Krishna, plans to shift from Kompally to Gundlapochampally, nearly 7 km away, just to save around Rs 6,000 in monthly rent, highlighting the extreme measures residents are taking to manage the housing burden. The situation paints a challenging picture for Hyderabad's workforce, where the dream of affordable living is rapidly moving farther away.
