Navi Mumbai Sees Highest Rental Hike Of 6.2% Between April And June, Report Reveals

Navi Mumbai: Navi Mumbai witnessed the most significant increase in average rent, which was 6.2% quarter-on-quarter (QoQ) followed by Hyderabad (4.2% QoQ) and Ahmedabad (4% QoQ), revealed the quarterly real estate rental update between April and June by Magicbricks, a real estate platform. The report stated a 14.6% year-on-year (YoY) and 2.6% QoQ surge in rental rates across 13 major cities to an average Rs33.3 per sqft per month.

In Navi Mumbai, the average rent increased from Rs28.99 per sqft per month in Q1 (January-March 2024) to Rs30.78 per sqft per month in Q2 (April-June). The report also observed a notable 14.8% QoQ increase in rental demand during this period, following a 16% QoQ increase in the previous quarter. However, the supply decreased by 2.2% QoQ across the mapped cities due to high absorption rates, leading to a rise in rents.

The highest rents are in cities of Mumbai (Rs82.28 per sqft per month), Delhi (Rs33.72 per sqft per month) and Thane (Rs29.84 per sqft per month). The report further observed that average rents in Greater Noida is Rs14.52 per sqft per month, Rs20.10 per sqft per month in Noida and Rs28 per sqft per month in Bengaluru.

While across the top 13 cities, the average rental yield is 3.6%, investments in Ahmedabad, Pune and Kolkata demonstrated the highest rental yields (3.8%), the report observed. Explaining the dynamics, Head of Research, Magicbricks, Abhishek Bhadra said, “With economic activity peaking, we anticipate continued growth in both rental demand and rents in the short to medium term.” Additionally, the supply of rental units is expected to improve as the stock of under-construction properties nears completion. Overall, the current landscape presents a promising opportunity for landlords and investors, encouraging greater participation in the rental market, he added.