Rental Market Booms: 13 Indian Cities Witness 14.6% YoY Rent Surge
The rental market in India is witnessing a significant surge, with 13 major cities recording a 14.6% YoY increase in rents. According to Magicbricks' latest report, the average rent across these cities has risen to Rs 33.3 psf per month.
Rental MarketIndian CitiesMagicbricksReal EstateInvestment MarketReal Estate NewsAug 01, 2024
Navi Mumbai, Hyderabad, and Ahmedabad have emerged as the top cities with the most significant increase in average rents. In Navi Mumbai, the average rent increased from Rs 28.99 psf per month in Q1 2024 to Rs 30.78 psf per month in Q2 2024. Similarly, average rents in Hyderabad increased from Rs 22.01 psf to Rs 22.93 psf per month, while in Ahmedabad, rents rose from Rs 17.25 psf to Rs 17.94 psf per month.
The report also observed a significant 14.8% QoQ increase in rental demand during this period, following a 16% QoQ increase in the previous quarter. However, the supply has decreased by 2.2% QoQ across the mapped cities due to high absorption rates, leading to a rise in rents.The highest rents are in cities of Mumbai (Rs 82.28 psf per month), Delhi (Rs 33.72 psf per month) and Thane (Rs 29.84 psf per month). The Report further observed that average rents in Greater Noida is Rs 14.52 psf per month, Rs 20.10 psf per month in Noida and Rs 28 psf per month in Bengaluru.Explaining the dynamics, Abhishek Bhadra, Head of Research, Magicbricks, elaborated, \
Frequently Asked Questions
Which cities have witnessed the highest increase in average rents?
Navi Mumbai, Hyderabad, and Ahmedabad have emerged as the top cities with the most significant increase in average rents.
What is the average rent across the 13 major cities?
The average rent across the 13 major cities has risen to Rs 33.3 psf per month.
What is the rental yield across the top 13 cities?
The average rental yield across the top 13 cities is 3.6%.
Which cities have demonstrated the highest rental yields?
Investments in Ahmedabad, Pune and Kolkata demonstrated the highest rental yields (3.8%).
What is the outlook for the rental market in the short to medium term?
With economic activity peaking, we anticipate continued growth in both rental demand and rents in the short to medium term.
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