Rents continue to increase 16% YoY and 2.8% QoQ

SquareFeatIndia — Sun, 12 May 2024 11:26:29 +0000

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

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Rents continue to increase 16% YoY and 2.8% QoQ