The debate between buying and renting homes has once again resurfaced, and search trends from Magicbricks reveal an inclination among customers toward homeownership. With rising rental yields and a growing sentiment for owning property, data from Magicbricks highlights a notable shift in consumer behavior.
According to Magicbricks, across 13 metros, residential demand (searches) increased 7% YoY between July and September 2024, compared to a 3.1% YoY growth in rental demand (searches).
Drilling down further, Bengaluru witnessed an 18.2% QoQ rise in residential demand (searches) during this period, while rental demand (searches) dropped by 2.8% QoQ. A similar pattern emerged in other major metros like Delhi, where residential demand (searches) grew by 17.2% QoQ compared to a 9.9% increase in rental demand. Mumbai also followed suit, with residential demand climbing by 7.9% QoQ and rental searches decreasing by 4.7% QoQ.
These trends underscore a robust preference for homeownership, further supported by rising rental yields in key markets. Bengaluru, Mumbai, Chennai, and Navi Mumbai have reported an average rental yield of 3.6%. In Delhi, rental yields reached 2.5% between July and September 2024, up from 2.3% in the previous quarter.
Interestingly, the Greater Noida market emerged as an outlier, where rental demand continued to outpace residential demand, signaling unique dynamics in the region.
These insights reflect evolving market trends and the sustained confidence of homebuyers in the real estate sector, particularly in metro cities where the aspiration for homeownership remains strong.
(13 metros include Delhi, Gurugram, Noida, Greater Noida, Mumbai, Navi Mumbai, Thane, Bengaluru, Pune, Ahmedabad, Chennai, Kolkata, Hyderabad)
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