Property rents across major cities in India soared 22.4 percent year-on-year (YoY) and 4.6 percent quarter-on-quarter (QoQ) in July-September 2023 with cities like Thane, Gurugram and Greater Noida observing highest increase, according to Magicbricks’ rental index report.
The report also revealed that millennials aged between 18 and 34 years constituted 67 percent of rental demand across these cities.
The rental index report for July-September 2023 quarter observed that Thane (57.3 percent YoY), Gurugram (41.4 percent YoY), Greater Noida (28.7 percent YoY), Noida (25.2 percent YoY) and Hyderabad (24.2 percent YoY) observed highest appreciation in rent as compared to last year. Bengaluru witnessed 23.7 percent YoY growth in rentals while it was 22.1 percent YoY in Mumbai. Rentals grew by 7.3 percent YoY in Delhi, as per the report.
Sudhir Pai, CEO, Magicbricks, said: "The surge in rents reflects a confluence of factors—economic growth, urbanization, and the return to office by companies. High demand, coupled with limited supply has propelled rents, highlighting the evolving landscape of the real estate market.”
Also Read: Residential property demand rose 7.8% YoY, 10.4% on sequential basis in April-June 2023: Magicbricks
As businesses reinstate in-office work, the need for housing closer to workplaces has also intensified, especially from millennials, he said.
The report said that 41 percent of the tenants preferred mid-segment rentals ranging between Rs 10,000 to Rs 30,000 per month. Further, the market is dominated by semi-furnished units constituting 52.7 percent of demand and 48.7 percent of supply.
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