New Delhi [India], February 12 : There has been a significant 17.4 per cent year-on-year surge in rents across 13 major Indian cities, stated Magicbricks, an Indian real estate platform, in its latest Rental Update for the period of October to December 2023.
According to a press release, Gurugram emerged as the frontrunner with an impressive 31.3 per cent year-on-year surge, closely followed by Greater Noida (30.4 per cent YoY) and Bengaluru (23.1 per cent YoY).
The report also highlighted a 1.6 per cent quarter-on-quarter increase in rents, building on the momentum witnessed between July and September 2023, when rents rose by 4.6 per cent quarter-on-quarter.
Drawing insights from the preferences of over 20 million customers on the Magicbricks platform, the report revealed a modest 1.6 per cent year-on-year increase in rental demand.
Greater Noida (6.9 per cent YoY), Ahmedabad (6.6 per cent YoY), and Chennai (4.1 per cent YoY) experienced the highest growth in rental demand.
Conversely, rental supply witnessed a considerable decline of 16.9 per cent year-on-year, with notable exceptions such as Noida (19.6 per cent YoY), Hyderabad (3.2 per cent YoY), and Greater Noida (2.7 per cent YoY) exhibiting an uptick in rental supply.
Abhishek Bhadra, Head of Research at Magicbricks, elucidated the underlying dynamics shaping the rental market. He attributed the surge in rental demand to the economic expansion, burgeoning job markets, rising disposable incomes, and the influx of migration into Tier 1 cities.
Simultaneously, Bhadra noted a reduction in rental supply, possibly stemming from interest rates surpassing rental yields, dissuading investors and property owners from engaging in the rental housing market.
Commenting on the cyclical dip in rental demand observed between October and December 2023, Bhadra expressed optimism about a potential rebound in the short to medium term, underscoring the resilience and dynamism of the rental market.
The report highlighted millennials (aged 18-34) as the primary drivers of rental demand, constituting a significant 67 per cent of the total rental demand. Furthermore, 2 BHK units emerged as the preferred choice, commanding 41 per cent of the rental demand in the surveyed cities.
As the rental market continues to evolve amid changing economic landscapes and consumer preferences, Magicbricks remains committed to providing valuable insights to stakeholders, enabling informed decision-making in the real estate sector.
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