Magicbricks, has released its latest Rental Update, revealing a significant rise in rents across major cities. Between July and September 2024, the average rent increased by 7.4% quarter-on-quarter (QoQ) across 13 major cities, reaching INR 35.8 per square foot per month. This marks the highest quarterly increase in the last two years.
Chennai experienced the steepest rise, with rents surging 22.2% QoQ, from INR 17.94 per square foot (psf) in Q2 2024 to INR 26.91 psf in Q3 2024. Delhi and Thane also saw substantial increases, with Delhi’s rents rising 11.4% QoQ to INR 37.55 psf and Thane’s rents up by 10.9% QoQ to INR 33.10 psf.
According to the report, Mumbai remains the most expensive rental market, with an average rent of INR 86.50 psf per month, followed by Delhi at INR 37.55 psf and Navi Mumbai at INR 33.83 psf. In contrast, more affordable markets like Greater Noida (INR 15.48 psf), Noida (INR 21.32 psf), and Kolkata (INR 22.14 psf) offer lower rental rates.
Prasun Kumar, Chief Marketing Officer at Magicbricks, commented, “This year, rental demand has surged significantly, leading to the highest rent increase we’ve seen in the past eight quarters. Ready-to-move apartments are increasingly being bought for self-use, reducing the availability of rental properties. However, the growing supply of under-construction properties suggests that the market could stabilize in the coming quarters as more rental inventory becomes available.”
The report also highlighted a continued rise in rental demand, which grew by 14.8% QoQ in Q2 2024 and maintained steady growth of 2% in Q3. However, rental supply declined by 6.7% QoQ in the third quarter, exacerbating the supply-demand imbalance and driving up rental prices.
Additionally, the gross rental yields across the 13 cities averaged 3.62%, with Ahmedabad offering the highest yield at 3.9%, followed by Hyderabad, Kolkata, and Pune at 3.7% each. Chennai saw the largest increase in rental yields, rising by 21.3% QoQ, while Delhi, Hyderabad, and Navi Mumbai also reported solid gains of 8.8%, 5.4%, and 5.3%, respectively. However, Greater Noida, Gurugram, Kolkata, Mumbai, Noida, and Pune experienced declines in rental yields as property price growth outpaced rental increases.
Source: Magicbricks Research
City-wise Rental Data:
| City | Demand QoQ Change | Supply QoQ Change | Rent QoQ Change | Rent YoY Change |
|---|---|---|---|---|
| Ahmedabad | -2.7% | -5.1% | 7.9% | 16.9% |
| Bengaluru | -2.8% | -5.6% | 9.1% | 22.9% |
| Chennai | -0.3% | -17.4% | 22.2% | 37.4% |
| Delhi | 9.9% | -7.8% | 11.4% | 22.2% |
| Greater Noida | 22.8% | 8.8% | 6.6% | 26.2% |
| Gurugram | 6.4% | 2.3% | 4.9% | 15.8% |
| Hyderabad | 1.9% | -7.5% | 9.8% | 28.2% |
| Kolkata | 7.0% | -4.3% | 5.9% | 12.9% |
| Mumbai | -4.7% | -9.3% | 5.1% | 12.6% |
| Navi Mumbai | -0.2% | -10.8% | 9.9% | 28.7% |
| Noida | 11.1% | 0.4% | 6.0% | 20.2% |
| Pune | -6.4% | -8.5% | 6.2% | 14.3% |
| Thane | -6.8% | -17.7% | 10.9% | 13.8% |
| India Average | 1.1% | -6.7% | 7.4% | 17.1% |
Also Read: Main Streets Lead Retail Leasing Growth in Q3 2024; Rentals Surge Amid Tightening Vacancies
