Satellite city of Navi Mumbai witnessed the most significant increase in average rent which was 6.2% quarter-on-quarter (QoQ) followed by Hyderabad (4.2% QoQ) and Ahmedabad (4% QoQ), revealed the quarterly real estate rental update between April and June, 2024 by Magicbricks, India's leading real estate platform. The report stated a 14.6% year-on-year (YoY) and 2.6% surge in rental rates across 13 major Indian cities, to an average Rs 33.3 per sq ft per month.
In Navi Mumbai, the average rent increased from Rs 28.99 per sq ft per month in Q1 2024 (Jan-Mar 2024) to Rs 30.78 per sq ft per month in Q2 2024 (Apr-Jun 2024). The report also observed a significant 14.8% QoQ increase in rental demand during this period, following a 16% QoQ increase in the previous quarter. However, the supply decreased by 2.2% QoQ across the mapped cities due to high absorption rates, leading to a rise in rents.
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The highest rents are in cities of Mumbai (Rs 82.28 per sq ft per month), Delhi (Rs 33.72 per sq ft per month) and Thane (Rs 29.84 per sq ft per month). The report further observed that average rents in Greater Noida is Rs 14.52 per sq ft per month, Rs 20.10 per sq ft per month in Noida and Rs 28 per sq ft per month in Bengaluru.
Explaining the dynamics, Head of Research, Magicbricks, Abhishek Bhadra said, "With economic activity peaking, we anticipate continued growth in both rental demand and rents in the short to medium term. Additionally, the supply of rental units is expected to improve as the stock of under-construction properties nears completion. Overall, the current landscape presents a promising opportunity for landlords and investors, encouraging greater participation in the rental market.”
With high rental demand and rents, residential real estate continues to be a lucrative investment market. While across the top 13 cities, the average rental yield is 3.6%, investments in Ahmedabad, Pune and Kolkata demonstrated the highest rental yields (3.8%), the report observed.
