Magicbricks, a prominent real estate platform, has observed a significant uptick in property rents across major Indian cities, recording a robust 22.4 percent YoY and 4.6 percent QoQ surge in July–September 2023. Thane, Gurugram, and Greater Noida witnessed the highest increases. Millennials constituted 67 percent of rental demand. Thane led with 57.3 percent YoY growth, followed by Gurugram (41.4 percent), Greater Noida (28.7 percent), Noida (25.2 percent), and Hyderabad (24.2 percent). The report also highlighted tenant preferences for mid-segment rentals and semi-furnished units.
During the period from July to September 2023, Magicbricks revealed a significant increase in property rents across major Indian cities through its curated rental index report. The surge was robust, showing a 22.4 percent increase on a year-on-year basis and a noteworthy 4.6 percent quarter-on-quarter escalation. This surge, most notably pronounced in locales such as Thane, Gurugram, and Greater Noida, underscores the prevailing dynamism in the real estate landscape. Millennials, constituting the demographic between 18 and 34 years old, notably commanded a significant 67 percent share of the rental demand spectrum within these urban centres. The aforementioned report brings forth discerning observations regarding the rental climate during the July–September 2023 quarter. Noteworthy among these is the remarkable year-on-year rental appreciation observed in specific cities. Thane led the way with an impressive 57.3 percent year-on-year growth, followed closely by Gurugram at 41.4 percent, Greater Noida at 28.7 percent, Noida at 25.2 percent, and Hyderabad at 24.2 percent. In tandem, Bengaluru experienced a robust 23.7 percent year-on-year growth in rentals, whereas Mumbai witnessed a commendable 22.1 percent increase in the same metric. Delhi, in comparison, recorded a more moderate yet noteworthy growth of 7.3 percent year-on-year. Sudhir Pai, the Chief Executive Officer at Magicbricks, offered insightful commentary on this surging trend. He attributed the escalation in rents to a confluence of pivotal factors, including a burgeoning economic landscape, the relentless tide of urbanization, and the resumption of in-office work by corporations. The high demand coupled with a restricted supply milieu has been a driving force propelling rental rates to new zeniths, thereby spotlighting the continually evolving contours of the real estate sector. Pai expounded on the resurgence of in-office operations, noting its correlation with an increased demand for residences in close proximity to workplaces. This demand, notably driven by the millennial demographic, signifies a pivotal shift in the dynamics of the real estate market. The proximity of workplaces has now emerged as a discerning and influential factor in shaping housing preferences. The report also delves into the subtle preferences exhibited by tenants in terms of rental segments. It is discerned that 41 percent of tenants express a preference for mid-segment rentals, spanning the monthly rental range of Rs 10,000 to Rs 30,000. Additionally, the market landscape is characterized by the prominence of semi-furnished units, constituting a substantial 52.7 percent of demand and a parallel 48.7 percent of supply. Magicbricks, a leading real estate platform, epitomizes transparency in connecting property buyers and sellers. With monthly traffic exceeding 2 crores and an extensive repository of over 15 lakh property listings, it has transformed into a comprehensive service provider for diverse real estate needs over its 15 years of operation. The platform, showcasing profound expertise and research-driven insights, includes MBTV, India's premier online real estate YouTube channel, and proprietary tools empowering homebuyers with comprehensive information on price trends, forecasts, locality reviews, and more.
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