Due to the spurt in the migration to the New Capital, the Rentals in Vijayawada have seen a steep increase while the house rents have become more or less stable in Hyderabad. Vijayawada is struggling to keep up the demand while there is sufficient supply flowing into the market of Hyderabad.
The average rents in the commercial segment in Vijayawada have shot up some three times more than the average rent in Hyderabad. In fact, exclusive plush complexes are even attracting monthly rents as high as 1-1.5 lakh where they never cost a leasee any more than 30000 until a few years ago.
The current rents in Vijayawada are grossly inflated and will start moving southwards once the new capital city of Amaravati is developed. Once, the capital starts sporting better infrastructure, this crowd will shift there. Unlike Hyderabad and Vijayawada, Visakhapatnam has seen little traction in the rental market due to no spurt in migration.