New Delhi: Rents across 13 major cities in India grew 22.4% year-on-year in July September quarter on the back of growing demand from millennials, according to the flagship rental index released by India’s leading real estate platform Magicbricks.

On a quarterly basis, rents increased by 46% during July-September. Thane, Gurgaon, Greater Noida, Noida and Hyderabad recorded the highest appreciation in rent among cities compared to last year, the data showed.

While rents in Thane saw a steep 57 1% yoy increase during the period, Gurgaon registered a 41% y-o-y increase in rents. Millennials (age 18- 34 years) constituted about 67% of rental demand across these cities, showed the data, which has been collated after analysing the preferences and behavior of more than two crore customers using the platform.

About 41% of tenants preferred mid-segment rentals ranging between Rs 10,000-30,000 per month. The market, is dominated by semi-furnished units accounting for 52.7% of the demand and 48.7% of the supply.

“Surge in rents reflects a confluence of factor economic growth, urbanisation, and return to office by companies. High demand, coupled with limited supply has propelled rental, highlighting evolving landscape of real estate market. As businesses reinstate in-office work, the need for housing closer to workplaces has intensified, especially for millennials. However, notable is the slowdown in rent appreciation from the previous quarter, hinting at an expected deceleration in growth over the upcoming quarters as well,” said Sudhir Pai, CEO at Magicbricks.