Chennai’s Rental Market Sees 22.2% Surge: Magicbricks Report

Magicbricks’ Q3 2024 rental update reveals a 7.4% quarter-on-quarter (QoQ) increase in average rents across 13 major Indian cities, reaching Rs 35.8 per square foot per month—the highest in two years. Chennai recorded the sharpest rise, up 22.2% QoQ to Rs 26.91 psf, followed by Delhi (11.4%) and Thane (10.9%).

CHENNAI (Locality Wise Preference)

Mumbai remains the priciest market at Rs 86.50 psf, while developing markets like Greater Noida, Noida, and Kolkata offer more affordable rents. Rental demand has surged, with supply declining by 6.7% QoQ, leading to upward pressure on prices. Magicbricks reports that gross rental yields reached 3.62%, with Ahmedabad topping at 3.9%.

Prasun Kumar, Chief Marketing Officer, Magicbricks, noted that the increase in rents reflects a decline in rental supply as more ready-to-move apartments are purchased for self-use. The report suggests that an increase in under-construction supply could help balance the market in the upcoming quarters.