Demand Outstrips Supply To Push Residential Rents 15.3% YoY: Magicbricks
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Out of the 13 cities tracked, all except Noida observed a decline in supply of rental housing.
In a report on rental housing, Magicbricks, an online real estate platform has highlighted a 4.1% quarter on quarter (QoQ) and 15.3 % year on year (YoY) surge in average residential rents across the country. The report titled “Rental Housing Index” further observed that after a decline over the past two quarters, the rental demand increased 7.3% QoQ and 3.3% YoY, while the supply reduced by 5.7% QoQ and 17.8% YoY.
According to the report, IT hubs Chennai (14.3%), Bengaluru (12.2%), and Hyderabad (10.8%) recorded the highest growth in rental demand. Furthermore, out of the 13 cities tracked, all except Noida observed a decline in supply of rental housing.
The report also revealed that while 2BHKs continued to be the most preferred rental properties, the demand for 3BHKs grew by almost 6% QoQ, indicating an increasing preference for spacious homes.
"The Indian rental housing market is demonstrating a buoyant revival and the macroeconomic trends affirm that this is expected to persist through the coming quarters," said Sudhir Pai, CEO, Magicbricks. "It is noteworthy that major southern cities have exhibited resilience as they continue to attract talent from across the country. Gurugram and Pune are other notable cities with promising rent-trends as they continue to attract a migratory talent pool. Overall, these market dynamics suggest a swift progression towards "business as usual scenario" for the real estate industry and sustained growth trajectory of the Indian rental housing market."
| City | Demand | Supply | Rent |
| Ahmedabad | 5.90% | -3.60% | -0.80% |
| Bengaluru | 12.20% | -5.80% | 3.90% |
| Chennai | 14.30% | -9.30% | 1.30% |
| Delhi | -1.80% | -4.70% | 0.70% |
| Greater Noida | -10.30% | -0.70% | 2.70% |
| Gurugram | 8.90% | -12.00% | 8.20% |
| Hyderabad | 10.80% | -0.60% | 4.90% |
| Kolkata | -0.90% | -0.10% | 2.00% |
| Mumbai | 5.10% | -2.90% | 4.20% |
| Navi Mumbai | 5.50% | -18.80% | 1.40% |
| Noida | -0.70% | 4.20% | 5.10% |
| Pune | 7.80% | -7.70% | 2.90% |
| Thane | 5.20% | -13.10% | -0.50% |
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