Magicbricks, the real estate platform, released its flagship Rental Update (October- December 2023), revealing a robust 17.4% YoY surge in rents across 13 major Indian cities with Gurugram (31.3% YoY), Greater Noida (30.4% YoY) and Bengaluru (23.1% YoY) taking a lead.
The report also sighted that rents increased 1.6% QoQ, following an increase of 4.6% QoQ between July and September 2023.
Based on the preference of over 2 crore customers on Magicbricks platform, the report observed that the rental demand increased modestly by 1.6% YoY.
Greater Noida (6.9% YoY), Ahmedabad (6.6% YoY) and Chennai (4.1% YoY) observed the highest growth in rental demand. Concurrently, rental supply reduced considerably by 16.9% YoY with outliers like Noida (19.6% YoY), Hyderabad (3.2% YoY) and Greater Noida (2.7% YoY) demonstrating an increase in rental supply.
Explaining the dynamics, Abhishek Bhadra, head of research, Magicbricks, said, “In 2023, the economic expansion, thriving job markets, rising disposable incomes, and a migration influx to Tier 1 cities increased rental demand substantially. Simultaneously, rental supply reduced, possibly as interest rates surpassed rental yields, deterring investors and property owners from participating in the rental housing market”
He further added, “Between October and December 2023, we have observed a cyclical dip in the rental demand. However, we anticipate a rebound in the short to medium term, underscoring the dynamism of the rental market.”
The report concluded that millennials (age 18-34) constituted 67% of rental demand and 2 BHK units dominated the market, commanding 41% of the rental demand in these cities.
Other findings of the report
- 64% of tenants were males
- 76.7% of the demand and 66.8% of the total supply lies within the range of Rs 10,000 to Rs 30,000 per month, making it the most preferred range in the Indian rental market.
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