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:

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The post Rents Surge 7.4% QoQ Across Major Cities, Rental Yields Increase to 3.62% appeared first on Square Feat India.

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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