Rental demand-supply mismatch led to 13.5% increase in pan India average rent: Magicbricks Rental Index Report Oct-Dec, 2022

  • Pan-India average rent increased 7% QoQ; Gurugram (12.6%), Noida (9%) and Hyderabad (8%) witnessed maximum growth in their average rents.
  • Pan India rental demand decreased 18.1% QoQ, NCR witnessed the maximum dip of 26.6% while Chennai witnessed the least QoQ decline (6%)
  • The Pan India rental housing availability declined 6.3% QoQ

Magicbricks Rental Index for Oct-Dec 2022 revealed that in 2022, pan India average rent increased 13.5% as rental housing demand increased 8.5% and the supply decreased 17%. Further, pan-India average rents increased 7% QoQ while rental demand decreased 18.1% QoQ. Mapping rental trends across 13 major cities, the report observed that higher renting activity in the initial quarters of 2022 as migrant workforce returned to their work locations, exhausted the existing inventory in many cities.

The report also observed that NCR registered the maximum dip (26.6%) in rental demand, followed by Mumbai (13.9%), Kolkata (12.3%) and Chennai (6%). Further, all cities tracked by Magicbricks observed a decline in availability of rental units, except Mumbai and Thane that witnessed a QoQ growth of 2.9% and 1.9%, respectively. Greater Noida witnessed the maximum decline in availability (16.1%) while Ahmedabad observed the least decline (1.7%).

Elaborating on the trends, Sudhir Pai, CEO, Magicbricks shared, “The Indian rental housing market recovered steadily during the first two quarters of 2022, with rental demand peaking during those months. With the start of the new financial year, one can expect the rental demand to pick up again and increasing home-loan rates & economic uncertainty may also encourage prospective homebuyers to defer their purchase decisions and opt for rental homes.”

The report also observes that Gurugram (12.6%), Noida (9%) and Hyderabad (8%) witnessed maximum growth in their average rents.

Also Read: Google’s Raiden Infotech leases property in Navi Mumbai For $10.8 Lac Monthly rent

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