Rental income in major Indian cities increased by more than 14%, according to a report by Magicbricks.
New Delhi [India], August 2 According to a recent report by Magicbricks, rental income in major Indian cities has increased by 14.6% year-over-year, and 2.6% on a quarterly basis.
Abhishek Bhadra, Head of Research at Magicbricks, explained that with economic activity reaching new heights, they expect rental demand and rents to continue growing in the short to medium term. He also noted that the supply of rental units should improve as more under-construction properties are completed, presenting a favorable environment for landlords and investors.
Rental income is a significant source of earnings for many Indians.
Navi Mumbai saw a 6.2% increase in average rents on a quarterly basis, while Hyderabad and Ahmedabad experienced rises of 4.2% and 4% respectively. In Navi Mumbai, average rents rose from Rs 28.99 per square foot per month in January-March 2024 to Rs 30.78 psf per month in April-June 2024. Similarly, rents in Hyderabad increased from Rs 22.01 psf to Rs 22.93 psf per month, and in Ahmedabad, they went up from Rs 17.25 psf to Rs 17.94 psf per month.
The report also highlighted a notable 14.8% increase in rental demand on a quarterly basis during this period, following a 16% increase in the previous quarter. However, the supply of rental units decreased by 2.2% quarterly due to high absorption rates, which contributed to the rise in rents.
The highest rents were recorded in Mumbai at Rs 82.28 psf per month, followed by Delhi at Rs 33.72 psf per month, and Thane at Rs 29.84 psf per month. In Greater Noida, the average rent is Rs 14.52 psf per month, in Noida Rs 20.10 psf per month, and in Bengaluru Rs 28 psf per month.
With strong rental demand and rising rents, residential real estate remains a lucrative investment sector. Across the top 13 cities, the average rental yield is 3.6%, with Ahmedabad, Pune, and Kolkata showing the highest rental yields at 3.8%, according to the report.
Magicbricks is a property platform with an active base of over 1.5 million property listings.