Rental income in key Indian cities spiked over 14%: Magicbricks report
Rental income is a major source of earning for millions of Indians.
ANI
Aug 02, 2024 13:20 IST
New Delhi [India], August 2 (ANI): Rental income in major Indian cities has risen by 14.6 per cent on yearly basis and a meagre 2.6 per cent on a quarterly basis, Magicbricks, a real estate platform, in its latest report said.
Explaining the rental income dynamics, Abhishek Bhadra, Head of Research, Magicbricks, noted that with economic activity peaking, they 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," said the Head of Research.
Rental income is a major source of earning for millions of Indians.
Navi Mumbai saw 6.2 per cent quarterly, Hyderabad (4.2 per cent), and Ahmedabad (4 per cent) exhibited the most significant increase in average rents. In Navi Mumbai, the average rent increased from Rs 28.99 per square feet per month in Jan-Mar 2024 to Rs 30.78 psf per month in Apr-Jun 2024.
Similarly, average rents in Hyderabad increased from Rs 22.01 psf to Rs 22.93 psf per month, while in Ahmedabad, rents rose from Rs 17.25 psf to Rs 17.94 psf per month.
The report observed a significant 14.8 per cent quarterly increase in rental demand during this period, following a 16 per cent quarterly increase in the previous quarter.
However, the report asserted that the supply has decreased by 2.2 per cent quarterly across the cities due to high absorption rates, leading to a rise in rents.
The highest rents are in cities of Mumbai Rs 82.28 psf per month, Delhi Rs 33.72 psf per month and Thane Rs 29.84 psf per month.
The Magicbricks report further observed that average rents in Greater Noida is Rs 14.52 psf per month, Rs 20.10 psf per month in Noida and Rs 28 psf per month in Bengaluru.
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 per cent, investments in Ahmedabad, Pune and Kolkata demonstrated the highest rental yields (3.8 per cent), observed the report.
Magicbricks is a platform for buyers and sellers of property. It claims that it has an active base of over 15 lakh property listings. (ANI)
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