Rents increase 2.6% QoQ across 13 key cities; Ahmedabad, Pune, Kolkata deliver highest rental yields: Magicbricks Rent Update (April- June 2024)
Magicbricks, India's leading real estate platform, released its flagship Rental Update (April-June 2024), revealing a 14.6% YoY and 2.6% QoQ surge in rents across 13 major Indian cities, to an average INR 33.3 psf per month.
City Air News
Aug 1, 2024 06:19
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New Delhi, August 1, 2024: Magicbricks, India's leading real estate platform, released its flagship Rental Update (April-June 2024), revealing a 14.6% YoY and 2.6% QoQ surge in rents across 13 major Indian cities, to an average INR 33.3 psf per month.
Navi Mumbai (6.2% QoQ), Hyderabad (4.2% QoQ), and Ahmedabad (4% QoQ) exhibited the most significant increase in average rents. In Navi Mumbai, the average rent increased from INR 28.99 psf per month in Q1 2024 (Jan-Mar 2024) to INR 30.78 psf per month in Q2 2024 (Apr-Jun 2024). Similarly, average rents in Hyderabad increased from INR 22.01 psf to INR 22.93 psf per month, while in Ahmedabad, rents rose from INR 17.25 psf to INR 17.94 psf per month.
The report 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 (INR 82.28 psf per month), Delhi (INR 33.72 psf per month) and Thane (INR 29.84 psf per month). The Report further observed that average rents in Greater Noida is INR 14.52 psf per month, INR 20.10 psf per month in Noida and INR 28 psf per month in Bengaluru.
Explaining the dynamics, Abhishek Bhadra, Head of Research, Magicbricks, elaborated, "With economic activity peaking, we anticipate continued growth in both rental demand and rents in the short to medium term. Additionally, the supply of rental units is expected to improve as the stock of under-construction properties nears completion. Overall, the current landscape presents a promising opportunity for landlords and investors, encouraging greater participation in the rental market.”
With high rental demand and rents, residential real estate continues to be a lucrative investment market. While across the top 13 cities, the average rental yield is 3.6%, investments in Ahmedabad, Pune and Kolkata demonstrated the highest rental yields (3.8%), observed the report.
