Rental Incomes Surge Across Major Indian Cities, Magicbricks Report Reveals

Magicbricks' latest report highlights a 14.6% annual rise in rental incomes in major Indian cities. With economic activity peaking, rental demand and rents are set to grow. The most significant rent increases were seen in Navi Mumbai, Hyderabad, and Ahmedabad. An observed 14.8% quarterly rise in rental demand is noted.

Major Indian cities have witnessed a 14.6 per cent increase in rental income on an annual basis, with a modest 2.6 per cent rise quarterly, according to a report by real estate platform Magicbricks.

Abhishek Bhadra, Head of Research at Magicbricks, attributed the growth to heightened economic activity, predicting a continued upswing in rental demand and rents in the near term. 'Additionally, the supply of rental units is expected to improve as under-construction properties near completion,' Bhadra stated. 'The current landscape offers a lucrative opportunity for landlords and investors.'

Significant quarterly rent hikes were recorded in Navi Mumbai (6.2 per cent), Hyderabad (4.2 per cent), and Ahmedabad (4 per cent). A marked 14.8 per cent quarterly increase in rental demand was also noted, although supply dipped by 2.2 per cent due to high absorption rates, pushing rents higher.

Mumbai, Delhi, and Thane reported the highest rents, while Greater Noida, Noida, and Bengaluru also saw noticeable rent increments. Residential real estate remains a profitable investment, with Ahmedabad, Pune, and Kolkata yielding the highest rental returns at 3.8 per cent. Magicbricks, a platform for property transactions, claims an active base of over 15 lakh property listings.

(With inputs from agencies.)