According to Magicbricks’ Q3 2024 rental report, average rentals in 13 major Indian cities increased by 7.4% on a quarterly basis, to Rs 35.8 per square foot per month, the largest increase in two years. At Rs 86.50 psf, Mumbai is the most expensive rental market, followed by Delhi at Rs 37.55 psf and Navi Mumbai at Rs 33.83 psf.
The largest rent increase, 22.2% QoQ, was observed in Chennai, while substantial increases of 11.4% and 10.9% were recorded in Delhi and Thane, respectively. However, the most reasonably priced markets continued to be Greater Noida (Rs 15.48 psf), Noida (Rs 21.32 psf), and Kolkata (Rs 22.14 psf).
Strong demand—which increased by over 2% during the quarter—and a 6.7% decline in supply are to blame for the spike in rental costs. There is less rental supply as a result of the growing choice for self-use in ready-to-move-in flats, said Prasun Kumar, CMO of Magicbricks. On the other hand, a rise in under-construction properties suggests that supply corrections may be forthcoming.
Gross rental yields reached 3.62%, with Ahmedabad leading at 3.9%, according to the survey. While Mumbai, Pune, and Noida saw minor decreases as property prices outpaced rent increases, Chennai experienced the largest QoQ yield gain at 21.3%.
Source: Construction Week
