Rents spike 17.4% YoY, Gurugram leads with 31.3% YoY surge: Magicbricks Rent Update

Jammu Tawi: Magicbricks, India’s leading real estate platform, released its flagship Rental Update (October- December 2023), revealing a robust 17.4% YoY surge in rents across 13 major Indian cities with Gurugram (31.3% YoY), Greater Noida (30.4% YoY) and Bengaluru (23.1% YoY) taking a lead. The report also sighted that rents increased 1.6% QoQ, following an increase of 4.6% QoQ between July and September 2023.Based on the preference of over 2 crore customers on Magicbricks platform, the report further observed that the rental demand increased modestly by 1.6% YoY. Greater Noida (6.9% YoY), Ahmedabad (6.6% YoY) and Chennai (4.1% YoY) observed the highest growth in rental demand. Concurrently, rental supply reduced considerably by 16.9% YoY with outliers like Noida (19.6% YoY), Hyderabad (3.2% YoY) and Greater Noida (2.7% YoY) demonstrating an increase in rental supply.Explaining the dynamics, Abhishek Bhadra, Head of Research, Magicbricks, elaborated, “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 to participate in the rental housing market.”