Driven by multiple factors like the presence of educational institutions, business hubs and consequent urban job opportunities, the demand for paying guest (PG) accommodations in India is on the rise, according to a report by MagicBricks.
In the fiscal year 2022-23, the National Capital Region (NCR) had the highest share of both PG accommodations that were taken up, at 24%, and the supply of PG rental space (25%), followed by Bengaluru that had demand-supply share of 23% and 17%, respectively. In Mumbai Metropolitan Region (MMR), the demand and supply share for PG accommodation accounted for 16% each.
Another interesting trend highlighted in the report, titled ‘Exploring the current landscape of PG accommodation in India’, is that “68% of tenants expressed interest in double- and triple-sharing PGs“. Approximately 71% of PG listings on the MagicBricks platform featured double occupancy spaces or larger setups.
Monthly rents for triple-sharing accommodation ranged from Rs 4,800-Rs 7,700, for double-sharing from Rs 6,800-10,000 and for single occupancy PG rooms from Rs 6,800-15,200, according to the report. PGs that catered to both men and women had around 55% share of the total demand.
Sudhir Pai, CEO of MagicBricks, said, “Cities with a high concentration of students and working professionals have witnessed a surge in the PG market. At the same time, with 52% of India’s total population being millennials, the demand for affordable and convenient accommodations such as PGs is expected to continue its momentum in the medium to long term. Another key driver of the growing popularity of PG accommodations is their cost-effectiveness.”
Even for real estate investors, PG accommodations are a lucrative option as rental yields are higher compared to the conventional housing market. The report observed that while rental returns have remained stagnant at 2-3% within the conventional housing market, PG accommodations offer 50% -75% more yields, with comparatively lower risks.
In the fiscal year 2022-23, the National Capital Region (NCR) had the highest share of both PG accommodations that were taken up, at 24%, and the supply of PG rental space (25%), followed by Bengaluru that had demand-supply share of 23% and 17%, respectively. In Mumbai Metropolitan Region (MMR), the demand and supply share for PG accommodation accounted for 16% each.
Another interesting trend highlighted in the report, titled ‘Exploring the current landscape of PG accommodation in India’, is that “68% of tenants expressed interest in double- and triple-sharing PGs“. Approximately 71% of PG listings on the MagicBricks platform featured double occupancy spaces or larger setups.
Monthly rents for triple-sharing accommodation ranged from Rs 4,800-Rs 7,700, for double-sharing from Rs 6,800-10,000 and for single occupancy PG rooms from Rs 6,800-15,200, according to the report. PGs that catered to both men and women had around 55% share of the total demand.
Sudhir Pai, CEO of MagicBricks, said, “Cities with a high concentration of students and working professionals have witnessed a surge in the PG market. At the same time, with 52% of India’s total population being millennials, the demand for affordable and convenient accommodations such as PGs is expected to continue its momentum in the medium to long term. Another key driver of the growing popularity of PG accommodations is their cost-effectiveness.”
Even for real estate investors, PG accommodations are a lucrative option as rental yields are higher compared to the conventional housing market. The report observed that while rental returns have remained stagnant at 2-3% within the conventional housing market, PG accommodations offer 50% -75% more yields, with comparatively lower risks.
