Magicbricks, has released its Rental Update for April to June 2024, highlighting a notable increase in rental prices across 13 major Indian cities. The report reveals a 14.6% year-over-year (YoY) and a 2.6% quarter-over-quarter (QoQ) rise in rents, reaching an average of INR 33.3 per square foot (psf) per month.
Significant rent increases were observed in Navi Mumbai, Hyderabad, and Ahmedabad. Navi Mumbai saw a rise of 6.2% QoQ, with average rents climbing from INR 28.99 psf in the first quarter of 2024 to INR 30.78 psf in the second quarter. Hyderabad experienced a 4.2% QoQ increase, with rents moving from INR 22.01 psf to INR 22.93 psf. Ahmedabad reported a 4% QoQ rise, with rents increasing from INR 17.25 psf to INR 17.94 psf.
The report also noted a 14.8% QoQ increase in rental demand, following a 16% QoQ rise in the previous quarter. Conversely, supply across these cities decreased by 2.2% QoQ due to high absorption rates, contributing to the uptick in rents.
Cities with the highest rents include Mumbai at INR 82.28 psf per month, Delhi at INR 33.72 psf, and Thane at INR 29.84 psf. Other cities reported varying rental averages, with Greater Noida at INR 14.52 psf, Noida at INR 20.10 psf, and Bengaluru at INR 28 psf.
Abhishek Bhadra, Head of Research at Magicbricks, commented on the trends: “With economic activity on the rise, we expect continued growth in both rental demand and rent prices in the short to medium term. The supply of rental units is likely to improve as more under-construction properties become available. This dynamic presents a favorable opportunity for landlords and investors, encouraging increased participation in the rental market.”
The report highlights that despite the overall average rental yield across the top 13 cities being 3.6%, Ahmedabad, Pune, and Kolkata delivered the highest rental yields at 3.8%.
City-wise Rental Metrics:
- Ahmedabad: Demand increased by 30.1% QoQ and 15.2% YoY. Supply decreased by 0.8% QoQ and 6.0% YoY. Rents rose by 4.0% QoQ and 10.3% YoY.
- Bengaluru: Demand remained stable at 0.3% QoQ but decreased by 11.0% YoY. Supply fell by 4.8% QoQ and 11.5% YoY. Rents increased by 3.7% QoQ and 24.6% YoY.
- Chennai: Demand grew by 6.9% QoQ and 6.9% YoY. Supply decreased by 13.2% QoQ and 37.3% YoY. Rents increased by 2.0% QoQ and 19.1% YoY.
- Delhi: Demand surged by 47.2% QoQ and 18.0% YoY. Supply slightly decreased by 0.1% QoQ and 9.5% YoY. Rents rose by 1.7% QoQ and 14.5% YoY.
- Greater Noida: Demand increased by 44.0% QoQ and 3.2% YoY. Supply rose by 4.4% QoQ and 29.0% YoY. Rents increased by 2.1% QoQ and 26.7% YoY.
- Gurugram: Demand grew by 24.8% QoQ and decreased by 7.6% YoY. Supply increased by 10.2% QoQ and 25.9% YoY. Rents rose by 2.8% QoQ and 20.6% YoY.
- Hyderabad: Demand rose by 1.7% QoQ but decreased by 8.5% YoY. Supply fell by 6.2% QoQ and 3.9% YoY. Rents increased by 4.2% QoQ and 23.1% YoY.
- Kolkata: Demand increased by 24.4% QoQ and decreased by 0.9% YoY. Supply decreased by 0.7% QoQ and 9.6% YoY. Rents fell by 2.3% QoQ but rose by 8.5% YoY.
- Mumbai: Demand increased by 16.0% QoQ and 2.2% YoY. Supply fell by 3.4% QoQ and 3.0% YoY. Rents rose by 3.8% QoQ and 10.5% YoY.
- Navi Mumbai: Demand increased by 22.2% QoQ and 13.8% YoY. Supply fell by 2.4% QoQ and 8.1% YoY. Rents rose by 6.2% QoQ and 20.7% YoY.
- Noida: Demand increased by 31.3% QoQ and 1.4% YoY. Supply rose by 1.2% QoQ and 32.4% YoY. Rents increased by 3.8% QoQ and 19.3% YoY.
- Pune: Demand increased by 18.1% QoQ and decreased by 3.6% YoY. Supply fell by 4.0% QoQ and 1.1% YoY. Rents rose by 1.7% QoQ and 12.3% YoY.
- Thane: Demand rose by 14.7% QoQ but fell by 18.8% YoY. Supply decreased by 4.3% QoQ and increased by 1.4% YoY. Rents fell by 3.2% QoQ and 18.7% YoY.
Source: Magicbricks Research
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