House rentals rise 4.9% in June quarter: Magicbricks
Magicbricks rental index for the April-June period. While demand grew 18.1% sequentially, supply rose 9.6%.
Based on the behaviour and preferences of over 20 million customers on the Magicbricks platform, the report observed that among notable cities, Bengaluru saw rents going up by 8.1%, Navi Mumbai by 7.3% and Gurgaon by 5.1%.
Delhi and Mumbai witnessed a marginal 0.9% and 0.1% sequential decline in rents.
«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 centres,» Magicbricks chief executive Sudhir Pai said.
According to him, as property values soared, homeowners seized opportunities for profitable property sales over rentals, reducing supply.
This coupled with high demand notably increased rents across key cities.
The popularity of 2-BHK units remains unchallenged, commanding a 53% share in both demand and supply, followed by 1-BHK apartments (27%) and 3-BHK units (18%). The demand for 3-BHK units declined from 36% in the March quarter to 18% in the June quarter, while the demand for 1-BHK houses increased from 17% to 27%.
This shift highlights a growing inclination toward compact apartments.
Beyond the factor of proximity to employment hubs, a significant driving force for demand this quarter is affordability, the report said. Rental accommodations with a monthly rent within ₹10,000-20,000 were preferred by tenants.
These preferences were predominantly observed within units of 500-1,000 sq ft of covered area. These preferences were predominantly observed within units of 500 to 1,000 sq
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