Rental housing demand in Gurugram, Delhi, Noida, Bengaluru, and Ahmedabad witnessed the highest growth
Cumulative rental housing supply grew 30.7% QoQ and 101.5% YoY; Navi Mumbai, Thane, Pune, Mumbai, and Chennai witnessed maximum growth
Pan-India rental rates increased 4% QoQ
New Delhi, May 31, 2022: Indian rental housing market demand (searches) grew 15.8% QoQ and 6.7% YoY in Q1, 2022 reveals Magicbricks’ India Rental Housing Update. The report further observes that the cumulative rental housing supply (listings) increased 30.7% QoQ and 101.5% YoY across the 13 Indian cities mapped. A first of its kind report by Magicbricks, it further states that most tenants (45%) prefer 2 BHK, followed by 3BHK (31%) and 1 BHK (19%) configurations. According to the report, most tenants prefer semi-furnished (53%) apartments in multistory (69%) buildings.
Sharing insights into the report, Sudhir Pai, CEO, Magicbricks, said, “With a milder than expected Covid-19 third wave and extensive vaccination drives, many offices had rolled out hybrid working plans from the beginning of this year. They started with bringing employees back to the office at least two to three times a week. As a result, many employees returned to the metros from their hometowns, and the rental housing market saw a sharp demand recovery in the first quarter of the year. Further, with educational institutions also opening up, many families and college/university students also started returning to the metros. We expect this trend to continue for the next few quarters as offices move towards higher occupancies and operations, leading to an improved rental housing market as well.”
The report concludes that there is an increase in the demand for rental housing near employment hubs and educational institutions as people return to metros with schools and offices opening up.
Macro trends spotted from Magicbricks’ India Rental Housing Update, Q1, 2022
In Q1 2022, the aggregate demand (searches) across the 13 cities increased 15.8% QoQ and 6.7% YoY. Gurugram, Delhi, Noida, Bengaluru, and Ahmedabad registered a growth of 33.5%, 27.8%, 21.4%, 19.4%, and 17.6% QoQ respectively.
The cumulative supply (listings) increased 30.7% QoQ and 101.5% YoY, with Navi Mumbai, Thane, Pune, Mumbai, and Chennai observing maximum growth of 40.9%, 40.9%, 38.1%, 37.6%, and 36.3% respectively.
The pan India rental rates increased 4% QoQ, alluding to improvements in the rental housing market of India.
45% of tenants prefer 2 BHK, followed by 31% and 19% for 3BHK and 1BHK respectively. Greater Noida, Hyderabad and Mumbai, are the only cities where more than 50% tenants are looking for 2 BHK configurations.
37% of tenants in major cities prefer properties within the rental price of INR 10,000 - 20,000 per month followed by 23% for INR 20,000 – 30,000 per month, with 40% of the rental supply within the price range of INR 10,000-20,000 per month.
53% of the tenants in major cities prefer semi-furnished rental homes followed by 32% and 15% for unfurnished and fully furnished homes respectively
69% of the total supply is for multistorey apartments followed by 15% and 14% for independent houses and builder floor apartments, respectively.