Demand for rental homes, measured based on online searches, rose by 29.0 per cent year-on-year (YoY) in the third quarter (Q3) of 2022, property buying and selling portal Magicbricks said.
The Magicbricks Rental Index for Q3 said the demand fell 3.9 per cent QoQ, but Greater Noida, Noida, and Gurugram saw the highest growth with 37.0 per cent, 12.7 per cent, and 8.5 per cent, respectively.
Delhi, Pune and Mumbai saw a decline of 2.6 per cent, 4.5 per cent, and 5.1 per cent QoQ, respectively, in rental housing demand, while Thane market stayed stable, the report said.
Magicbricks CEO Sudhir Pai “the Indian rental housing market recovered steadily during the first quarter of 2022, complemented by growth in the second quarter fueled by the gradual reopening of offices and educational institutions, and workforce returning to these cities."
Rental housing supplies across India declined 9.8 per cent QoQ and 12.6 per cent YoY. Although all the tracked cities observed a drop in availability, Chennai, Hyderabad, and Delhi witnessed the least QoQ decline of 1.9 per cent, 4.8 per cent, and 5.2 per cent, respectively.
"Limited availability of ready-to-move-in units, delays in delivery of under-construction projects, and higher leasing activity in the previous two quarters” led to the drop in rental units, the report said.
Pai added "With the effects of the pandemic waning, we can expect this normal cycle to persist henceforth."
Performance of Rental Housing Market
Here is a city-wise look:
1. Bengaluru's average rents increased 7.3 per cent QoQ while demand (7.8 per cent ) and supply (12.6 per cent ) declined QoQ. There was a preference for semi-furnished 2 BHKs, constituting 52 per cent of the total demand and 55 per cent of the total supply.
2. In Chennai, 40 per cent of tenants were interested in units within 500 – 1,000 square feet. The average rent increased 2 per cent QoQ, while demand for rental units declined 5.6 per cent QoQ, and there was a marginal dip of 1.9 per cent QoQ in supply
3. Delhi's average rent increased by 3.1 per cent QoQ, demand registered a marginal decline of 2.6 per cent QoQ, and the supply reduced by 5.2 per cent QoQ. Two BHKs and 3BHKs dominated the residential market with an aggregate demand and supply share of 75