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Residential rentals surge 22.4% in September quarter, millennials drive record demand: Magicbricks


Rentals for residential properties across 13 major cities in India soared 22.4% from a year ago and witnessed 4.6% sequential increase during the quarter ended September. This follows a preceding quarter where rents surged by 4.9%, showed a Magicbricks report.

Based on the behavior and preferences of over 2 crore customers on Magicbricks platform, the report also observed that Thane witnessed 57.3% on-year growth, Gurugram 41.4%, Greater Noida 28.7%, Noida 25.2% and Hyderabad 24.2% observed highest appreciation in rent as compared to last year.

The report also revealed that millennials in the age group of 18-34 years constituted 67% of rental demand across these cities.

“The surge in rents reflects a confluence of factors–economic growth, urbanization, and the return to office by companies. High demand, coupled with limited supply has propelled rents, highlighting the evolving landscape of the real estate market,” said Sudhir Pai, the CEO, Magicbricks.

According to him, as businesses reinstate in-office work, the need for housing closer to workplaces has also intensified, especially from millennials. However, notable is the slowdown in rent appreciation from the previous quarter, hinting at an expected deceleration in growth over the upcoming quarters as well.

The report concludes that 41% of the tenants preferred mid segment rentals ranging between Rs 10,000 to Rs 30,000 per month. Further, the market is dominated by semi-furnished units constituting 52.7% of demand and 48.7% of supply.

(Magicbricks is a part of Bennett, Coleman and Co., which publishes The Economic Times).


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