Magicbricks Releases Eye-opening Report of Flagship Rental Index

One of the most popular property portals across the country, Magic Bricks has released flagship Rental Index for July-September 2023. The index report says that, the rents across 13 major cities in India soared 22.4% YoY and 4.6% QoQ. This follows a preceding quarter where rents surged by 4.9%.

Based on the behavior and preference of the searches of over 2 crore visitors of customers on Magicbricks platform, the report unveils that Thane (57.3% YoY), Gurugram (41.4% YoY), Greater Noida (28.7% YoY), Noida (25.2% YoY) and Hyderabad (24.2% YoY) observed highest appreciation in rent as compared to last year. 

Earlier Magicbricks' Rental Index for Jan-Mar 2023, Bangalore exhibited a notable QoQ growth of 12.2% in demand (searches) for rental housing, securing the top position among the 13 metro cities tracked in terms of demand. 

CEO of Magicbricks, Sudhir Pai opined, “The surge in rents reflects a confluence of factors—economic growth, urbanization, and the return to office by companies. High demand, coupled with limited supply has propelled rents, highlighting the evolving landscape of the real estate market. Further, as businesses reinstate in-office work, the need for housing closer to workplaces has also intensified, especially from millennials. However, notable is the slowdown in rent appreciation from the previous quarter, hinting at an expected deceleration in growth over the upcoming quarters as well.”

The index report also added that 41 percent of the tenants are opting for mid segment rental that ranges between Rs. 10,000 and Rs. 30,000 per month. As the concept of furnished rentals, studio rooms, co-living apartments has penetrated in this segment, the market is getting dominated by semi-furnished units constituting 52.7% of demand and 48.7% of supply.