Rental housing market searches increases 15.8% in Q1, 2022

Rental housing market searches increased 15.8% quarter-on-quarter (QoQ) and 6.7% year-on-year (YoY) in the first quarter (Q1), 2022, in 13 cities revealing Magicbricks' India Rental Housing Update.

Gurugram, Delhi, Noida, Bengaluru, and Ahmedabad recorded a growth of 33.5%, 27.8%, 21.4%, 19.4%, and 17.6% quarter-on-quarter (QoQ) respectively.

The report further sees that the cumulative rental housing listings grew 30.7% QoQ and 101.5% YoY across the 13 Indian cities mapped. Navi Mumbai, Thane, Pune, Mumbai, and Chennai witnessed a maximum increase of 40.9%, 40.9%, 38.1%, 37.6%, and 36.3%, respectively.

According to the report, most tenants (45%) like 2 BHK, followed by 3BHK (31%) and 1 BHK (19%) configurations.

According to the report, most tenants like semi-furnished (53%) apartments in multistory (69%) buildings.

Magicbricks CEO Sudhir Pai told the media that with a milder than anticipated Covid-19 third wave and extensive vaccination drives, many offices had launched hybrid working plans from the start of this year. They began by bringing employees back to the office at least two to three times a week. As a result, many employees returned to the metros from their hometowns, and the rental housing market witnessed a sharp demand recovery in Q1 of the year.

Further, with educational institutions also opening up, many families and college/university students also began returning to the metros. This trend will continue for the next few quarters as offices move towards more increased occupancies and operations, directing to an improved rental housing market as well, He said.

The pan India rental rates rose 4% quarter-on-quarter, alluding to progress in the rental housing market of India.

About 37% of tenants in key cities prefer properties within the rental cost of Rs 10,000 - Rs 20,000 per month, followed by 23% for Rs 20,000 – Rs 30,000 per month, with 40% of the rental supply within the cost range of Rs 10,000 - Rs 20,000 per month.

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Also read: Covid-19 third wave hits rental housing market in India