Delhi-NCR Leads the Charge in India’s Rental Housing Market
India's rental housing market saw continued momentum in the July-September quarter, even as activity began to stabilize after three quarters of sharp movement. According to a study by Magicbricks, average rents rose 4.4% sequentially and 18.1% on-year. Tenant activity varied across major metros, reflecting a gradual alignment between demand and supply.
The July-August period marked a consolidation phase, with moderation in both demand and supply, moving the market towards a steadier rhythm. National rental demand edged up 0.2% sequentially and 0.4% on-year, while supply increased 0.6% on-quarter and 5.9% on-year. This indicates a gradual alignment between tenant interest and available listings.
Delhi-NCR was the key driver of the quarter's movement. Demand surged in Greater Noida (29.5% QoQ), Delhi (17.8% QoQ), and Noida (10.8% QoQ). Kolkata also posted a 5.4% QoQ rise, indicating sustained traction, as shown in the report.
"While the national rental market has begun to stabilize after several quarters of rapid growth, the continued momentum in NCR shows how infrastructure upgrades, better connectivity, and a steady flow of mid-sized homes are sustaining tenant interest," said Prasun Kumar, CMO, Magicbricks. He added that the moderation in rents across most cities also indicates a healthy shift toward balance, where supply is catching up with demand. This phase is likely to improve affordability for tenants while creating a more predictable environment for homeowners and investors.
Several major cities, including Chennai, Bengaluru, Hyderabad, Pune, and Mumbai, witnessed softer shifts, with demand easing between -1.2% and -7.2% QoQ. On the supply side, Delhi saw the sharpest increase at 17.6% QoQ, followed by Ahmedabad at 6.5%, reinforcing the broader trend towards balance.
According to Magicbricks, average rents continued to rise across most markets. Thane led with a 12.5% QoQ increase, followed by Chennai at 6.7% QoQ and Mumbai at 4.9% QoQ. Delhi recorded 4.5% QoQ growth, reflecting steady absorption. The market's gradual stabilization and balanced growth are positive signs for both tenants and investors in the rental housing sector.
