Magicbricks Revealed that Rising Rents Increase Profits from Homeownership

News Desk, News Nation 360 : The top real estate website in India, Magicbricks, has released new data showing a sharp increase in rental prices in major Indian cities, making it more and more expensive for end users to rent. Cities like Mumbai (3.61), Greater Noida (2.27), Delhi (2.12), Chennai (1.76), and Ahmedabad (1.46), where rental appreciation has exceeded capital value growth, are getting more expensive for tenants, according to the Rent to Price Growth Differential (RPGD). Rising rental rates, which recorded an impressive 18.4% year-on-year growth to INR 37.27 per square foot per month in the fourth quarter of 2024, are now making homeownership a more financially viable alternative for increasingly more tenants, especially in cities such as Greater Noida, Delhi, Bengaluru, and Noida, where hikes are most severe; however, in Gurugram, Pune, and Hyderabad, where the Rent Price to Property Price Discount (RPGD) is less than one, renting remains cheaper than buying, upholding the rental market's viability, which overall reflects robust resilience fueled by urban migration and a need for flexible, well-located housing; demand for premium rental housing, specifically furnished and semi-furnished apartments, is increasing, with tenants valuing lifestyle amenities and convenience, but rental inflation is also re-channeling demand towards suburban and fringe areas, generating new investment opportunities in new rental hotspots; geographically, furnished rental apartments recorded significant rent advances in Chennai, Bengaluru, and Greater Noida, while semi-furnished apartments registered spikes in Greater Noida, Delhi, and Chennai, and unfurnished apartments registered modest rent advances in Greater Noida, Chennai, Delhi, and Bengaluru, all reflecting a dynamic, evolving rental market shaped by both affordability pressures and evolving tenant preferences.