Mumbai leads Q3 rental price surge, followed by Delhi and Navi Mumbai
Mumbai remains the priciest rental market at Rs 86.50 psf per month, followed by Delhi at Rs 37.55 psf and Navi Mumbai at Rs 33.83 psf.
Gross rental yields across 13 cities reached 3.62%. Ahmedabad led with the highest yield at 3.9%, followed by Hyderabad, Kolkata, and Pune at 3.7% each. (Image: Freepik)
Between July and September 2024, the average rental prices across 13 major cities in India experienced a quarter-on-quarter (QoQ) increase of 7.4%, reaching Rs 35.8 per square foot per month. This marks the most substantial rise observed in the past two years, as reported in the latest Rental Update by Magicbricks.
Chennai exhibited the most pronounced increase, with a QoQ rise of 22.2%, escalating from Rs 17.94 psf in the second quarter of 2024 to Rs 26.91 psf in the third quarter. Additionally, Delhi and Thane reported notable increases, with Delhi’s average rent climbing 11.4% QoQ to Rs 37.55 psf, while Thane’s rent saw a 10.9% QoQ rise to Rs 33.10 psf.
According to the report, Mumbai remains the priciest rental market at Rs 86.50 psf per month, followed by Delhi at Rs 37.55 psf and Navi Mumbai at Rs 33.83 psf. Meanwhile, developing markets of Greater Noida (Rs 15.48 psf), Noida (Rs 21.32 psf), and Kolkata (Rs 22.14 psf) are more affordable.
Elaborating on the same, Prasun Kumar, Chief Marketing Officer, Magicbricks, said, “This year, rental demand has shown a strong quarter-on-quarter surge, driving rents to the sharpest increase we’ve seen over the past eight quarters. It’s evident that ready-to-move apartments are increasingly being purchased for self-use, contributing to a decline in rental supply. Meanwhile, the rise in under-construction supply suggests potential for market balance in the coming quarters, as more inventory becomes available.”
The report detailed that after a notable increase of 14.8% quarter-on-quarter (QoQ) in rental demand during the previous quarter (April to June 2024), the demand continued to increase, albeit at a slower pace of close to 2%. However, the supply of rental properties has not kept pace, declining by 6.7% QoQ in the third quarter (July to September). This imbalance between demand and supply has contributed to the upward pressure on rental prices.
The report concluded that gross rental yields across 13 cities reached 3.62%. Ahmedabad led with the highest yield at 3.9%, followed by Hyderabad, Kolkata, and Pune at 3.7% each. Chennai saw the largest QoQ yield growth at 21.3%, with Delhi, Hyderabad, and Navi Mumbai also reporting strong increases at 8.8%, 5.4%, and 5.3%, respectively. However, Greater Noida, Gurugram, Kolkata, Mumbai, Noida, and Pune recorded declines as property price growth outpaced rental rate growth.
| City* | Demand QoQ Change | Supply QoQ Change | Demand YoY Change | Supply YoY Change | Rent QoQ Change | Rent YoY Change |
| Ahmedabad | -2.7% | -5.1% | 18.7% | -5.8% | 7.9% | 16.9% |
| Bengaluru | -2.8% | -5.6% | -9.6% | -5.8% | 9.1% | 22.9% |
| Chennai | -0.3% | -17.4% | 13.5% | -39.5% | 22.2% | 37.4% |
| Delhi | 9.9% | -7.8% | 19.1% | -7.7% | 11.4% | 22.2% |
| Greater Noida | 22.8% | 8.8% | 13.4% | 32.9% | 6.6% | 26.2% |
| Gurugram | 6.4% | 2.3% | -0.1% | 25.5% | 4.9% | 15.8% |
| Hyderabad | 1.9% | -7.5% | -1.6% | -5.2% | 9.8% | 28.2% |
| Kolkata | 7.0% | -4.3% | 5.0% | -14.9% | 5.9% | 12.9% |
| Mumbai | -4.7% | -9.3% | 2.1% | -5.6% | 5.1% | 12.6% |
| Navi Mumbai | -0.2% | -10.8% | 18.2% | -16.1% | 9.9% | 28.7% |
| Noida | 11.1% | 0.4% | 7.7% | 26.7% | 6.0% | 20.2% |
| Pune | -6.4% | -8.5% | -3.5% | -2.2% | 6.2% | 14.3% |
| Thane | -6.8% | -17.7% | 14.8% | -9.6% | 10.9% | 13.8% |
| India | 1.1% | -6.7% | 3.1% | -4.7% | 7.4% | 17.1% |
Source: Magicbricks Research
