The rental searches across 13 major cities in India increased 18.1% quarter-on-quarter, listings increased 9.6% quarter-on-quarte while rents increased 4.9% quarter-on-quarter, according to Rental Index of Magicbricks, a real estate platform.
Bengaluru (8.1%), Navi Mumbai (7.3%) and Gurugram (5.1%) displayed the highest increment in average rents quarter-on-quarter. Conversely, Delhi(- 0.9%) and Mumbai (-0.1%) witnessed marginal decline in rents quarter-on-quarter.
Sudhir Pai, CEO of the company said, “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.”
As per the Magicbricks Report, the popularity of 2 BHK units remains unchallenged, commanding a significant 53% share in both searches and listings, followed by 1 BHK (27%) and 3 BHK (18%).
The searches for 3 BHK units declined from 36% in Q1 2023 to 18% in Q2 2023, while the searches for 1 BHK units increased from 17% in Q1 2023 to 27% in the present quarter.
Rental accommodations with a monthly rent within Rs 10,000 to Rs 20,000 emerged as the favored choice among tenants. These preferences were predominantly observed within unit dimensions spanning from 500 to 1,000 sq ft of covered area.