House rentals show slight increase in third quarter; details here

Average rents across India have risen by 5.2 per cent on a sequential basis for the quarter that ended on 30 September 2022, while aggregate demand and cumulative availability of rental properties declined by 3.9 per cent and nearly 10 per cent, respectively, in 13 Indian cities. According to Sudhir Pai, CEO of Magicbricks, the Indian rental housing market has recovered steadily in the first quarter of 2022. He added that the recovery was complemented by growth in the second quarter, fuelled by the gradual reopening of educational institutions and offices, and the workforce returning to these cities. On a year-on-year basis, the aggregate demand represented by searches jumped by 29 per cent, as per the Magicbricks Rental Index for Q3 2022. Demand saw sequential growth in Greater Noida at 37 per cent, Noida at 12.7 per cent and Gurugram at 8.5 per cent. The availability of rental units is being impacted by delays in the delivery of under-construction units and most available units are being purchased as residences, not investments. Supply in Chennai (1.9 per cent), Hyderabad (4.8 per cent) and Delhi (5.2 per cent) reported the lowest decline sequentially. Bengaluru witnessed an increase of 7.3 per cent in rents, Mumbai saw a 6.6 per cent increase, Greater Noida reported a 6.3 per cent rise and Hyderabad saw a 5.2 per cent jump. But while rents jumped in Bengaluru by 7.3 per cent, demand was reduced by 7.8 per cent and supply by 12.6 per cent quarter-on-quarter (q-o-q). A preference was there for semi-furnished 2 BHKs, which constituted 52 per cent of the total demand and 55 per cent of the total supply. Delhi’s average rent rose by 3.1 per cent q-o-q, while demand reported a marginal decline of 2.6 per cent and supply reduced by 5.2 per cent in the same period. The residential market saw domination by 2 and 3BHKs with an aggregate demand and supply share of 75 per cent. In Mumbai, average rents jumped by 6.6 per cent q-o-q, while demand fell by 5.1 per cent and supply by 11.8 per cent. Tenants preferred smaller units of 500-1,000 sq ft, which constituted 52 per cent of demand and 44 per cent of supply. According to Sudhir Pai, with the declining effects of the pandemic, people can expect this normal cycle in the Indian rental housing market to continue. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.