NEW DELHI, AUGUST 22, 2023
Magicbricks, India’s leading real estate platform, released its flagship Rental Index for April-June 2023, observing that the rental demand across 13 major cities in India increased 18.1 per cent QoQ (quarter-on-Quarter), supply increased 9.6 per cent QoQ while rents increased 4.9 per cent YoY (Year-o-Year).
Based on the behaviour and preferences of over 2 crore customers on Magicbricks platform, the report also observed that notable cities such as Bengaluru (8.1 per cent), Navi Mumbai (7.3 per cent), and Gurugram (5.1 per cent) displayed the highest increment in average rents QoQ. Conversely, Delhi (- 0.9 per cent) and Mumbai (-0.1 per cent) witnessed marginal decline in rents QoQ.
“Over the past year, rental housing demand surged in major Indian cities, driven by returning employees and students. Return to office culture boosted the need for workplace-proximate housing while educational institutions resumed in-person activities, drawing students back to city centers. Meanwhile, as property values soared, homeowners seized opportunities for profitable property sales over rentals, reducing supply. This, coupled with high demand, notably hiked rents across prominent Indian cities,” said Sudhir Pai, CEO, Magicbricks.
As per the Magicbricks Report, the popularity of 2 BHK units remains unchallenged, commanding a significant 53 per cent share in both demand and supply, followed by 1 BHK (27 per cent) and 3 BHK (18 per cent). The demand for 3 BHK units declined from 36 per cent in Q1 2023 to 18 per cent in Q2 2023, while the demand for 1 BHK units increased from 17 per cent in Q1 2023 to 27 per cent in the present quarter. This shift highlights a growing inclination toward compact apartments.
The report concludes that beyond the factor of proximity to employment hubs, a significant driving force for demand this quarter is affordability. Rental accommodations with a monthly rent within INR 10,000 to 20,000 emerged as the favoured choice among tenants. These preferences were predominantly observed within unit dimensions spanning from 500 to 1,000 square feet of covered area.