Real estate platform MagicBricks has released its flagship. Rental Update (October-December 2023), with Gurugram (31.3% YoY), Greater Noida (30.4% YoY) and Bengaluru (23.1% YoY) showing a 17.4% YoY increase in rents across 13 major Indian cities.
The report also observed that rents increased by 1.6% QoQ between July and September 2023, after rising 4.6% QoQ.
Based on the preferences of more than 2 crore users on the Magicbricks platform, the report observed that rental demand has grown by 1.6% year-on-year.
Greater Noida (6.9% YoY), Ahmedabad (6.6% YoY) and Chennai (4.1% YoY) saw the highest growth in rental demand. At the same time, rental supply declined substantially by 16.9% YoY as Noida (19.6% YoY), Hyderabad (3.2% YoY) and Greater Noida (2.7% YoY) showed growth in rental supply. Is.
Explaining the dynamics, Abhishek Bhadra, Head of Research, MagicBricks said, “In 2023, rental demand will increase significantly due to economic expansion, job markets, rising disposable income, and migration to Tier 1 cities. At the same time, rental supply decreased, possibly causing interest rates to exceed rental yields, preventing investors and property owners from participating in the rental housing market.”
“Between October and December 2023, we have seen a cyclical decline in rental demand. However, we expect a recovery in the short to medium term, underlining the dynamics of the rental market,” he added.
The report concluded that millennials (ages 18-34) make up 67% of rental demand and 2 BHK units dominate the market, accounting for 41% of rental demand in these cities.