BENGALURU: Bengaluru city has witnessed a 23.7% year-on-year surge in rents, according to a rental update (January-March 2024) report released by real estate platform Magicbricks.
Greater Noida (32.1% YoY) and Gurugram (24.5% YoY) lead the way. The report revealed a 16% YoY surge in rents across 13 major Indian cities.
The report also highlighted that rents increased 2.8% quarter-on-quarter, following an increase of 1.6% QoQ between October and December 2023.
Based on the preference of over 2 crore customers on Magicbricks, the report observed that rental demand has increased a significant 16% QoQ during this period, led by Chennai (24.9% QoQ), Navi Mumbai (20.1% QoQ) and Noida (19.2% QoQ). However, supply has increased marginally by 1.8% QoQ due to swift absorption of available rental units, according to a press release issued on Wednesday.
Explaining the dynamics, Abhishek Bhadra, head of research, Magicbricks, said, “Prior to 2020, residential rental yields in India were averaging around 3%. However, since 2022, following the resumption of office operations, we’ve witnessed a notable surge in rental demand, consequently driving up rents and offering higher yields to landlords. We anticipate this upward trend in rents to persist over the next few months, particularly as rental activity typically peaks in the first two quarters of the fiscal year. Notably, residential and IT hubs like Bengaluru, Gurugram, Hyderabad and Noida have experienced significant increases in their rental yields, in line with our expectations.”
The report also observed that the demand for rental accommodation within a budget of Rs 10,000 to Rs 30,000 per month is the dominant segment accounting for 42% of the total demand share.