Affordable Rental Housing in Delhi: Top Areas for Budget-Friendly Living
Discover the top areas in Delhi offering affordable rental housing, as per the latest report by Magicbricks Rental Index for April-June this year. Find out where you can get the best deals on two-bedroom apartments.
Affordable HousingRental MarketDelhi Real EstateMagicbricksLocalities In DelhiReal EstateAug 10, 2025
Dwarka Mor and Laxmi Nagar are the areas to find the cheapest rental accommodation in Delhi, with rents ranging from Rs 13,700 to Rs 16,100 for two-bedroom apartments. Rental rates in the national capital have increased by approximately 36.8 per cent compared to last year, as it continues to be the most expensive city for accommodation after Mumbai, where rents exceed double those in Delhi.
These findings are from real estate platform Magicbricks Rental Index for April-June this year. As per the report, Chhatarpur in South Delhi also emerged as an area where people can find cheap rentals, with average monthly rent for two-bedroom flats being Rs 20,500 and Rs 37,500 for three-bedroom units.
New Delhi’s rental market continues to grow steadily, backed by its status as the national capital and a hub for professionals, students, and migrants from across the country, the report notes. Localities like Dwarka, Saket, and South Delhi remain highly sought after due to their strong connectivity, metro access, and established metro infrastructure. Ongoing metro expansions, urban renewal projects, and improved civic amenities are further enhancing rental appeal across the country.
Two-bedroom flats in Saket and Mayur Vihar 1 both command average monthly rents of Rs 28,300. The most expensive localities are Vasant Kunj and Lajpat Nagar. Two-bedroom flats in Vasant Kunj have a monthly rent of Rs 46,500, and three-bedroom flats have a rent of Rs 71,800. In Lajpat Nagar, the monthly rent for two-bedroom and three-bedroom apartments is Rs 38,600 and Rs 62,500, respectively.
According to data from the report, there is a mismatch in the nature of supply and demand in the rental market. While there is a higher demand for smaller and cheaper rental flats, supply favours larger and expensive flats. As per the report, 40 per cent of the demand for rental accommodations in Delhi is in the Rs 10,000 to Rs 20,000 segment, and 19 per cent of the demand comes from the Rs 20,000 to Rs 30,000 segment. However, for the 59 per cent of demand in the Rs 10,000 to Rs 30,000 segment, only 33 per cent of the supply is accounted for.
On the other hand, while flats with rents above Rs 50,000 account for just 11 per cent of the demand, 38 per cent of the supply is in this segment. In the rental market, 33 per cent of the demand is for one-bedroom flats, but only 15 per cent of the available supply falls within this category. In contrast, three-bedroom apartments represent only 20 per cent of the demand, while 40 per cent of the supply comprises these larger units.
Frequently Asked Questions
Which areas in Delhi offer the cheapest rental accommodation?
Dwarka Mor and Laxmi Nagar are the areas to find the cheapest rental accommodation in Delhi, with rents ranging from Rs 13,700 to Rs 16,100 for two-bedroom apartments.
What is the average rent for two-bedroom flats in Chhatarpur, South Delhi?
The average monthly rent for two-bedroom flats in Chhatarpur, South Delhi, is Rs 20,500.
How much have rental rates in Delhi increased compared to last year?
Rental rates in Delhi have increased by approximately 36.8 per cent compared to last year.
What is the most expensive locality for rental accommodation in Delhi?
Vasant Kunj is the most expensive locality for rental accommodation in Delhi, with two-bedroom flats commanding a monthly rent of Rs 46,500 and three-bedroom flats costing Rs 71,800.
What is the demand-supply mismatch in the Delhi rental market?
There is a higher demand for smaller and cheaper rental flats, but the supply favours larger and expensive flats. For example, 59 per cent of the demand is for flats in the Rs 10,000 to Rs 30,000 segment, but only 33 per cent of the supply is in this segment.
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