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The rental rates in 13 major Indian cities increased by 16% year over year in the March quarter. The area with the biggest increase in rentals was Greater Noida, where rates rose by 32.1%.
Bengaluru and Gurugram came next, with growth rates of 23.7% and 24.5%, respectively. Rents increased by 32.1% in Greater Noida, the new home of many techies and corporate workers, compared to increases of 24.5% and 23.7% in Bengaluru and Gurugram.
According to Magicbricks’ statement, there was a 2.8% sequential rise in rent between October 2023 and December 2023, after a 1.6% increase between those two months.
Demand And Supply Trends In Real Estate Property
Based on the choices of almost two crore clients, the survey finds that the most sought-after rental housing was between Rs 10,000 and Rs 30,000 per month, making up 42% of the overall demand.
On a quarterly basis, the rental demand was highest in Chennai, Navi Mumbai, and Noida. The supply of rental units did, however, only slightly grow by 1.8% from quarter to quarter (Q-o-Q), suggesting a mismatch between supply and demand.
Expert Insights On Increase In Property Rental
The head of research at Magicbricks, Abhishek Bhadra, outlined the main causes of the increase in rent. The average residential rental income was around 3 percent before to 2020 in India.
But since 2022, when office activities have resumed, we have seen a significant increase in the demand for rentals, which has raised rates and given landlords larger returns.”
“We expect this increasing trend in rents to continue over the coming months,” he continued, “especially since rental activity usually peaks in the first two quarters of the fiscal year.”
Notably, rental yields have significantly increased in residential and IT hotspots like Bengaluru, Gurugram, Hyderabad, and Noida, in accordance with our forecasts.
Future Prospects For The Property Investment
The increase in rental rates observed in major Indian cities is indicative of a changing real estate market trend, which is being fuelled by elements including the return of office activities and evolving tenant preferences.
Landlords and tenants alike will have to adjust to the changing rental market dynamics as long as rents keep rising. A balanced approach to rental rules and real estate development is necessary, as evidenced by the spike in rental prices observed in major Indian cities.
In many regions, demand is greater than supply, thus stakeholders will need to work together to make sure that everyone has access to reasonably priced rental housing alternatives.
Source-ET
