India’s rental market continues to grow with average rents increasing 4.9 percent QoQ: Magicbricks

New Delhi/Hyderabad, Aug 22, 2023 – Magicbricks, India’s main actual property platform, launched its flagship Rental Index for April-June 2023, observing that the rental demand throughout 13 main cities in India elevated 18.1% QoQ , provide elevated 9.6% QoQ whereas rents elevated 4.9% YoY. Based on the habits and preferences of over 2 crore clients on Magicbricks platform, the report additionally noticed that notable cities resembling Bengaluru (8.1%), Navi Mumbai (7.3%), and Gurugram (5.1%) displayed the best increment in average rents QoQ. Conversely, Delhi (- 0.9%) and Mumbai (-0.1%) witnessed marginal decline in rents QoQ.

Sudhir Pai, the CEO, Magicbricks, commented, “Over the previous yr, rental housing demand surged in main Indian cities, pushed by returning workers and college students. Return to workplace tradition boosted the necessity for workplace-proximate housing whereas instructional establishments resumed in-person actions, drawing college students again to metropolis facilities. Meanwhile, as property values soared, householders seized alternatives for worthwhile property gross sales over leases, decreasing provide. This, coupled with excessive demand, notably hiked rents throughout outstanding Indian cities..”

As per the Magicbricks Report, the recognition of two BHK items stays unchallenged, commanding a major 53% share in each demand and provide, adopted by 1 BHK (27%) and three BHK (18%). The demand for 3 BHK items declined from 36% in Q1 2023 to 18% in Q2 2023, whereas the demand for 1 BHK items elevated from 17% in Q1 2023 to 27% within the current quarter. This shift highlights a rising inclination towards compact residences.

The report concludes that past the issue of proximity to employment hubs, a major driving drive for demand this quarter is affordability. Rental lodging with a month-to-month lease inside INR 10,000 to 20,000 emerged because the favored selection amongst tenants. These preferences have been predominantly noticed inside unit dimensions spanning from 500 to 1,000 sq. ft of lined space.