Millennials (Age 18-34) represent 67% of rental demand throughout 13 cities. (Representative picture)
Rental demand elevated modestly by 1.6% YoY as provide lowered 16.9% YoY
Magicbricks, the actual property platform, launched its flagship Rental Update (October- December 2023), revealing a strong 17.4% YoY surge in rents throughout 13 main Indian cities with Gurugram (31.3% YoY), Greater Noida (30.4% YoY) and Bengaluru (23.1% YoY) taking a lead.
The report additionally sighted that rents elevated 1.6% QoQ, following a rise of 4.6% QoQ between July and September 2023.
Based on the desire of over 2 crore clients on Magicbricks platform, the report noticed that the rental demand elevated modestly by 1.6% YoY.
Greater Noida (6.9% YoY), Ahmedabad (6.6% YoY) and Chennai (4.1% YoY) noticed the best development in rental demand. Concurrently, rental provide lowered significantly by 16.9% YoY with outliers like Noida (19.6% YoY), Hyderabad (3.2% YoY) and Greater Noida (2.7% YoY) demonstrating a rise in rental provide.
Explaining the dynamics, Abhishek Bhadra, head of analysis, Magicbricks, mentioned, “In 2023, the economic expansion, thriving job markets, rising disposable incomes, and a migration influx to Tier 1 cities increased rental demand substantially. Simultaneously, rental supply reduced, possibly as interest rates surpassed rental yields, deterring investors and property owners from participating in the rental housing market”
He additional added, “Between October and December 2023, we have observed a cyclical dip in the rental demand. However, we anticipate a rebound in the short to medium term, underscoring the dynamism of the rental market.”
The report concluded that millennials (age 18-34) constituted 67% of rental demand and a couple of BHK models dominated the market, commanding 41% of the rental demand in these cities.
Other findings of the report
- 64% of tenants have been males
- 76.7% of the demand and 66.8% of the full provide lies inside the vary of Rs 10,000 to Rs 30,000 monthly, making it probably the most most well-liked vary within the Indian rental market.
