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4.3. Post-Pandemic Trends
Rental tastes have changed as a result of the COVID-19 epidemic, with a greater desire for larger areas, suburban settings, and
homes with amenities that allow for remote work. Furthermore, short-term rentals and variable lease durations have grown in
popularity, which has changed the dynamics of the market.
5. Rental Market:- Growing Urbanization Fuels Rental Demand and Prices
India's rental housing market continues to gain momentum, driven by strong economic fundamentals and enhanced
government initiatives aimed at improving transparency and accessibility. Key measures introduced in the Union Budget 2024-
2025, such as public-private partnerships to develop dormitory-style housing for industrial workers and the PM Awas Yojana
Urban 2.0, are expected to bolster workforce migration and increase demand for rental properties.
According to the latest Rental Index report by Magicbricks, rental property demand experienced a marginal year-on-year
decline of 0.5% in Q2 2024. However, regional patterns showed considerable variation. Thane (18.80%), Delhi (18.00%), and
Ahmedabad (15.20%) saw the highest year-on-year growth, while Bengaluru (-11.00%), Hyderabad (-8.50%), and Gurugram (-
7.60%) reported declines. Despite these regional disparities, overall demand for rental housing in India remains robust,
supported by rising employment, rapid urbanization, and improved connectivity.
On the supply side, the availability of rental housing struggled to keep pace with demand, showing a 3.10% year-on-year
decline in Q2 2024. Chennai (-37.30%), Bengaluru (-11.50%), and Kolkata (-9.60%) experienced the steepest reductions in
rental housing stock. Conversely, Noida (32.40%), Greater Noida (29.00%), and Gurugram (25.90%) saw the most substantial
increases in rental supply over the same period.
Rental demand and supply dynamic, by city:

Rental demand and supply dynamic

Increase Decrease Total

60.00%
50.00% 18.80%
-0.50%
40.00% 1.40%
18.00% 3.20% 13.80%
30.00% -3.60%
20.00% 15.20% 6.90% -7.60% 2.20%
10.00% -8.50% -0.90%
0.00% -11.00%
Ahmedabad Bengaluru Chennai Delhi Greater … Gurugram Hyderabad Kolkata Mumbai Navi … Noida Pune Thane Country …

Fig.2

Rental prices have continued to rise, with a 14.60% year-on-year increase recorded in Q2 2024. The average rental rate stood
at INR 38.78/sq. ft./month (USD 0.46/sq. ft./month) for furnished apartments, INR 32.94/sq. ft./month (USD 0.39/sq.
ft./month) for semi-furnished apartments, and INR 30.35/sq. ft./month (USD 0.36/sq. ft./month) for unfurnished apartments.
Mumbai remained the most expensive rental market, with average monthly rents of INR 77,500 (USD 929) for 2 BHK
apartments and INR 130,600 (USD 1,565) for 3 BHK units. In contrast, Greater Noida offered the lowest average rents, with 2
BHK units at INR 16,100 (USD 193) and 3 BHK units at INR 21,800 (USD 261).
6. Conclusion :– affordability are directly impacted by government policies,
Given how quickly the housing market is evolving today, it is such as tax incentives and rent regulations.
essential to comprehend the fundamentals of flat rent pricing
and rental market behaviour. Numerous factors, such as The market landscape has changed due to emerging trends
including the post-pandemic need for larger areas and
property attributes, economic indicators, demographic suburban houses, as well as technology developments in
changes, and shifting society tastes, have been found to rental platforms. This has presented players with both new
influence rental patterns in this study. While amenities and
property-specific features satisfy tenants' needs for comfort opportunities and problems. Landlords, tenants, investors,
and legislators can all make well-informed decisions that are
and convenience, location continues to be a key factor in in line with changing market conditions by implementing
renting pricing, with urban proximity and accessibility data-driven strategies and utilising the research's insights.
driving higher values.
7. References:-
While demographic statistics show how young professionals, [1] Li, Lingxiao, and Stephen Malpezzi. “Analyzing
students, and ageing populations are increasingly affecting Housing Market Behavior: Supply, Demand and
market preferences, economic variables like inflation, Prices.” Housing Supply and Regulation in 35 Chinese
employment rates, and pay growth all have a big impact on
affordability and demand. Furthermore, supply and Cities, Lincoln Institute of Land Policy, 2015, p. Page 8-
Page 20. JSTOR,

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