Noida, Gurugram and Bengaluru witness highest increase in rent of 30% in March quarter: Report

A new report by Magicbricks has revealed that rental prices in Noida, Gurugram and Bengaluru recorded the highest growth of about 30% in the March quarter. Meanwhile, rentals in 13 major Indian cities have surged by 16% year-on-year in the same quarter.

Hike in rent

Greater Noida witnessed the highest increase, with rents soaring by 32.1%. Gurugram and Bengaluru followed closely with growth rates of 24.5% and 23.7%, respectively. During the Jan-March period, the rents increased 2.8% sequentially following an increase of 1.6% between Oct and Dec 2023.

The report which surveyed over two crore customers further revealed that rental accommodation in the range of Rs 10,000 to Rs 30,000 per month was the most sought-after, accounting for 42% of the total demand. On a quarterly basis, cities including Chennai, Navi Mumbai and Noida led the rental demand.

Meanwhile, the supply of rental units increased only marginally by 1.8% quarter-on-quarter.

As per Abhishek Bhadra, Head of Research at Magicbricks, following the resumption of office operations, rents have gone up offering higher yields to the landlords.

"Prior to 2020, residential rental yields in India were averaging around 3 percent. However, since 2022, following the resumption of office operations, we've witnessed a notable surge in rental demand, consequently driving up rents and offering higher yields to landlords", said Abhishek Bhadra, Head of Research at Magicbricks.

He further mentioned that the upward trends in rentals will persist over the next few months.

"We anticipate this upward trend in rents to persist over the next few months, particularly as rental activity typically peaks in the first two quarters of the fiscal year. Notably, residential and IT hubs like Bengaluru, Gurugram, Hyderabad, and Noida have experienced significant increases in their rental yields, in line with our expectations", he added.

Also watch: Housing rents soar: Rentals in 7 IT hubs see 31% spike; Bengaluru tops the list, says Anarock