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The latest Magicbricks report shows India's rental housing market is slowing slightly after earlier rapid growth. Nationally, demand rose only 0.2 % QoQ and 0.4 % YoY, while supply increased 0.6 % QoQ and 5.9 % YoY. Average rents still climbed 4.4 % QoQ and 18.1 % YoY. Delhi-NCR saw strong demand, with Greater Noida up 29.5 % QoQ, Delhi 17.8 %, and Noida 10.8 %. Other major metros like Chennai, Bengaluru, Hyderabad, Pune, and Mumbai experienced demand declines ranging from 1.2 % to 7.2 %. Semi-furnished homes and one and two bedroom units remain most popular.
The Magicbricks rental index for the July-September quarter indicates that the Indian rental housing market is entering a period of moderate growth. Nationally, overall demand rose only 0.2 % QoQ and 0.4 % YoY, while supply increased 0.6 % QoQ and 5.9 % YoY. Despite this moderation, average rents continued to rise, recording a 4.4 % increase QoQ and 18.1 % over the last year. Advertisement
Regionally, Delhi-NCR stood out with strong demand. Greater Noida saw a 29.5% QoQ increase, Delhi 17.8%, and Noida 10.8?%. This was supported by rising rental activity across residential segments, especially in mid-sized homes with one or two bedrooms. By contrast, other major metros showed a slowdown. Chennai, Bengaluru, Hyderabad, Pune, and Mumbai experienced declines in rental demand ranging from 1.2% to 7.2% QoQ, suggesting that the momentum seen in recent quarters has started to stabilize in these cities.
Supply trends also varied across regions. Delhi recorded a 17.6% QoQ increase in listings, the highest among major cities, followed by Ahmedabad at 6.5%. Rental growth was highest in Thane, with a 12.5% QoQ increase, followed by Chennai at 6.7%, Mumbai at 4.9%, and Delhi at 4.5%. These trends indicate that while demand is stabilizing in some metros, certain areas continue to see both strong interest and higher rents.
Tenant preferences remain consistent. Two-bedroom homes accounted for 44% of demand, and one-bedroom units made up 32%. Semi?furnished homes continue to be preferred, representing 51?% of demand and 54% of supply. Homes ranging between 500 sqft and 1,500 sqft drew 77% of tenant interest, underlining the continued focus on practical, mid-sized housing.
This moderation follows several quarters of robust growth, reflecting an ongoing balance between supply and demand. While rents continue to increase, the market appears to be moving toward a steadier growth phase rather than sharp surges, allowing tenants and investors to make more measured decisions.
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