Rent Surges In Major Indian Cities; Noida, Gurgaon, Bengaluru Record HighestAccording to a report by Magicbricks, the rental prices in several Indian cities have increased by 16 per cent. The rent of the housing complex in Greater Noida has recorded the highest increase by a 32.1 % hike. The hike in Greater Noida is attributed to the emergence of the city as a hub for corporate companies.
Notably, Gurugram and Bengaluru were followed by a rent growth percentage of 24.5% and 23.7%, respectively. The report said that the rent rents increased by 2.8% during the Jan-March period, following an increase of 1.6% between Oct and Dec 2023.
The report further notes that 42 per cent of the total demand for renal accommodation was in the range of Rs 10,000 to Rs 30,000 per month. The report was prepared on the opinions of over two crore customers. The market was dominated by the semi-furnished units, with 2BHK accounted for 43 percentage of the total total demand. The demand then follows 3BHK with 36 percentage, the report added.
According to Abhishek Bhadra, Head of Research at Magicbricks, the major reason for the surge in rents was the resumption of office operation in 2022, which led to a notable rise in rental demand and subsequently offered higher yields to landlords.
The research chief of Magicbricks further opined that the upward trend in rents would persist over the next few months, noting that the rental activity typically peaks in the first two quarters of the fiscal year. He also added that cities such as Bengaluru, Gurugram, Hyderabad, and Noida have seen significant surges in their rental yields.
However, as rental prices continue to increase in major Indian cities, it is analysed that there should be adequate policies for balanced methods for landlords and tenants.