Rental income in major Indian cities has seen a significant annual increase of 14.6 per cent and a modest quarterly growth of 2.6 per cent, according to a report by Magicbricks, a leading real estate platform.
Abhishek Bhadra, Head of Research at Magicbricks, attributes this growth to heightened economic activity. He stated, “With economic activity peaking, we 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.”
Rental income remains a major source of earnings for millions of Indians. Navi Mumbai led the quarterly rental income increase with a 6.2% rise, followed by Hyderabad at 4.2%, and Ahmedabad at 4%. In Navi Mumbai, the average rent rose from Rs 28.99 per square foot (psf) per month in Jan-Mar 2024 to Rs 30.78 psf per month in Apr-Jun 2024. Hyderabad saw an increase from Rs 22.01 psf to Rs 22.93 psf per month, while Ahmedabad’s rents went up from Rs 17.25 psf to Rs 17.94 psf per month.
The report also noted a robust 14.8% quarterly increase in rental demand, following a 16% rise in the previous quarter. Despite this, the supply of rental units decreased by 2.2% quarterly due to high absorption rates, driving rents higher.
Mumbai, Delhi, and Thane remain the cities with the highest rents, with Mumbai leading 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.
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