What comes to your mind when you think about high rent? Perhaps Bengaluru is the first city which comes to most minds, right? But as per a recent report by real estate platform Magicbricks, Gurugram has turned out as the city with the highest rent surge.
1.Ahmedabad-Up 4.8%?
2.Bengaluru-Up 23.1%?
3.Chennai-Up 14.7%
4.Delhi-Up 10.5%?
5.Greater Noida-Up30.4%
6.Gurugram-Up31.3%
7.Hyderabad-Up20.7%
8.Kolkata-Up12.1%?
9.Mumbai-Up16.0%?
10.Navi Mumbai-Up14.1%?
11.Noida-Up21.4%
12.Pune-Up16.7%
13.Thane-Up17.8%?
Also Read:?Understanding The Pros And Cons Of Buying &?Renting?A House
As per annual Rental Update (October¨CDecember 2023) report published by Magicbricks recently, there is an overall strong 17.4% YoY increase in rents in 13 major Indian cities, with Bengaluru (23.1% YoY), Greater Noida (30.4% YoY), and Gurugram (31.3%) seeing the highest surge in rents in last one year.
Explaining the dynamics, Abhishek Bhadra, head of research at Magicbricks pointed out that the year 2023 witnessed a significant surge in rental demand due to various factors such as economic expansion, thriving job markets, rising disposable incomes, and migration to Tier 1 cities. At the same time, there was a decline in the supply of rental units, possibly due to interest rates exceeding rental yields, which discouraged investors and property owners from entering the rental housing market.
He continued, saying that we have seen a cyclical decline in the demand for rentals between October and December of 2023. But in the near to medium run, we see a recovery, highlighting the dynamic nature of the rental market, as per News18 report.?2 BHK units dominated the market and commanded 41% of the rental demand in these cities, with millennials (those between the ages of 18 and 34) making up 67% of the rental demand.
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