Rents surge 22.4% YoY and 4.6% QoQ; millennials drive record demand: Magicbricks Rent Update (Jul-Sep 2023)

Hyderabad/New Delhi, 25th November 2023:– Magicbricks, India’s leading real estate platform, released its flagship Rental Index for July-September 2023, observing that 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 preferences of over 2 crore customers on the Magicbricks platform, the report also observed 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. The report also revealed that millennials (Age 18-34) constituted 67% of rental demand across these cities.

Sudhir Pai, the CEO, Magicbricks, commented, “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 report concludes that 41% of the tenants preferred mid segment rentals ranging between Rs 10,000 to Rs 30,000 per month. Further, the market is dominated by semi-furnished units constituting 52.7% of demand and 48.7% of supply.

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