Rental Prices Soar 25% in Prime Indian Cities in 2025, Led by Mumbai and Bengaluru
Property rents in major Indian cities, namely Mumbai, Delhi, Bengaluru, Noida, and Gurugram, saw a significant surge of 25% in 2025. This sharp increase in rental prices was driven by several factors, including rising property prices, companies mandating the return of workers to offices, and a growing demand for better living conditions.
Many workers were forced to move farther from their offices to find affordable homes, leading to a shift in rental dynamics. Shveta Jain, MD of Residential Services at Savills India, stated, “We expect rentals to remain on an upward trajectory, with more growth towards established corridors, while affordability pressures may push incremental demand towards peripheral locations.”
Mumbai, known for its high property values, witnessed rent increases of 1-20% in its prime areas. The city’s residents are increasingly looking for larger homes with better amenities. The demolition and reconstruction of old buildings have also contributed to the rise in rental prices.
In Gurugram, luxury homes saw rent hikes of 8-25%. Areas like Dwarka Expressway and Golf Course Road led the pack with 25% and 20% jumps, respectively. Shauzab Kazmi from Moneytree Realty explained, “Top executives prefer to stay near the office, and that is the reason why luxury rentals continue to go up, as these complexes are located near office hubs. Mid-segment employees have to move to peripheral areas to save on rent, though there, too, there has been a substantial increase in rentals.”
Homes located near metro stations became much pricier to rent, reflecting the convenience and accessibility they offer. Bengaluru's rents jumped 18-20% due to the influx of company workers and foreigners. Noida's expressway area saw rents climb 19% from 2024, although new luxury home launches dropped by 17%.
Delhi’s unique real estate landscape was highlighted by Pradeep Prajapati from Wealthvisory Capital, who noted, “While most of the real estate development is now focused in Noida and Gurugram, Delhi often beats them in rentals because of a lack of availability.” Delhi saw an overall rent increase of 19%, with the South-East and South-Central areas experiencing the highest jumps.
The trend of rising rents is expected to continue in 2026, with more demand for established corridors and a shift towards peripheral locations due to affordability concerns. The real estate market in these prime Indian cities is dynamic and continues to evolve, influenced by economic, social, and infrastructural factors.
