Magicbricks, released its Rental Update (January-March 2024), report revealing a 16% YoY surge in rents across 13 major Indian cities with Greater Noida (32.1% YoY) Gurugram (24.5% YoY), and Bengaluru (23.7% YoY) taking a lead. The report also sighted that rents increased 2.8% QoQ, following an increase of 1.6% QoQ between October and December 2023.
Based on the preference of over 2 crore customers on Magicbricks platform, the report further observed that rental demand has increased a significant 16% QoQ during this period, led by Chennai (24.9% QoQ), Navi Mumbai (20.1% QoQ) and Noida (19.2% QoQ). However, the supply has increased marginally by 1.8% QoQ, due to swift absorption of available rental units.
Explaining the dynamics, Abhishek Bhadra, Head of Research, Magicbricks, elaborated, “Prior to 2020, residential rental yields in India were averaging around 3 percent. However, since 2022, following the resumption of office operations, we’ve witnessed a notable surge in rental demand, consequently driving up rents and offering higher yields to landlords. We anticipate this upward trend in rents to persist over the next few months, particularly as rental activity typically peaks in the first two quarters of the fiscal year. Notably, residential and IT hubs like Bengaluru, Gurugram, Hyderabad and Noida have experienced significant increases in their rental yields, in line with our expectations.”
The report also observed that the demand for rental accommodation within the budget of Rs 10,000 to Rs 30,000 per month is the dominant segment accounting for 42% of the total demand share.
| City | Demand QoQ Change | Supply QoQ Change | Demand YoY Change | Supply YoY Change | Rent QoQ Change | Rent YoY Change |
| Ahmedabad | 14.3% | 0.1% | 5.3% | 7.2% | 2.5% | 8.3% |
| Bengaluru | 15.0% | -6.2% | -11.2% | -4.6% | 4.4% | 23.7% |
| Chennai | 24.9% | -22.6% | 10.1% | -32.0% | 5.0% | 18.9% |
| Delhi | 14.0% | -2.7% | -5.7% | -12.1% | 4.1% | 14.2% |
| Greater Noida | 3.9% | -5.9% | -5.2% | 40.8% | 4.0% | 32.1% |
| Gurugram | 12.9% | 0.3% | -15.9% | 10.6% | 2.6% | 24.5% |
| Hyderabad | 18.6% | -3.5% | -0.3% | 5.9% | 6.8% | 22.9% |
| Kolkata | 9.2% | -6.9% | -7.5% | -9.7% | 3.1% | 13.3% |
| Mumbai | 12.4% | 4.0% | -4.6% | 5.4% | 0.9% | 12.3% |
| Navi Mumbai | 20.1% | -2.3% | -1.0% | -7.1% | 5.0% | 18.2% |
| Noida | 19.2% | 9.7% | -11.3% | 34.7% | 3.3% | 19.3% |
| Pune | 15.1% | 5.7% | -12.3% | 4.7% | 1.0% | 14.6% |
| Thane | 14.6% | 9.4% | -0.7% | -3.3% | -0.6% | 17.7% |
| India | 16.0% | 1.8% | -5.7% | -1.4% | 2.8% | 16.0% |
Source: Magicbricks Research
