India’s rental housing market is beginning to catch its breath after three consecutive quarters of rapid escalation, but the latest Magicbricks Rental Index for July–September 2025 shows the story is far from uniform. While the national market is settling into a more stable rhythm, the National Capital Region continues to pull far ahead, driven by sharp demand spikes in Greater Noida, Delhi and Noida.
The JAS 2025 quarter marked a period of consolidation. Demand rose just 0.2% quarter-on-quarter and 0.4% year-on-year at the national level, while supply nudged up by 0.6% QoQ and 5.9% YoY. These narrow shifts suggest a system that is trying to find equilibrium after an overheated stretch. The earlier surge had pushed rents to record levels across several metros, and the latest numbers indicate the market is finally balancing out, with listings catching up to tenant interest.
Despite this overall moderation, rents continued their upward run. Average rents climbed 4.4% QoQ and 18.1% over the past year. The increase shows that while tenant activity softened, the fundamentals driving rental escalation—urban migration, hybrid work patterns, and strong absorption in mid-range properties—remain intact.
The quarter’s most striking movement came from Delhi–NCR. Greater Noida registered a remarkable 29.5% jump in rental demand, making it the fastest-rising micro-market in the country for the second straight quarter. Delhi followed with 17.8% growth, and Noida with 10.8%. This trio has become the nation’s strongest rental engine, supported by expanding connectivity, new infrastructure corridors, and rising availability of mid-sized homes that appeal to both working professionals and young families.
Kolkata also posted a healthy 5.4% rise in demand, reflecting sustained activity in established residential pockets. In contrast, several large metros moved in the opposite direction. Chennai, Bengaluru, Hyderabad, Pune and Mumbai saw demand dip between 1.2% and 7.2% QoQ. For markets that witnessed sharp rent inflation through 2024 and early 2025, this cooling suggests a natural stabilisation phase.
Supply trends further underline the shift toward balance. Delhi recorded the strongest rise in listings at 17.6% QoQ, followed by Ahmedabad at 6.5%. The additional inventory is helping absorb tenant demand more smoothly, easing some of the pressure that had accumulated through earlier quarters.
Rents, however, continued rising in most cities. Thane posted the steepest jump at 12.5% QoQ, driven by strong commuter interest and a wave of new-age townships. Chennai followed with 6.7%, while Mumbai and Delhi registered quarterly increases of 4.9% and 4.5%, reflecting steady absorption in well-connected neighbourhoods.
Magicbricks CMO Prasun Kumar says this phase marks an important rebalancing moment for India’s rental economy. According to him, the stabilisation visible across major cities, coupled with NCR’s contrasting momentum, indicates a market moving toward healthier alignment between what tenants want and what developers are supplying. He adds that as supply improves and rent growth slows in several pockets, affordability is likely to improve, giving both tenants and investors a clearer view of the future.
Consumer preferences remained steady during the quarter. Two-bedroom apartments continued to dominate with 44% of national demand, followed by one-bedroom units at 32%. Semi-furnished homes were the most sought-after, accounting for more than half of both demand and supply. Mid-sized homes between 500 and 1,500 square feet remained the backbone of rental transactions, capturing 77% of tenant interest.
The next few quarters will reveal whether this stabilisation holds or if rising urban mobility triggers a fresh wave of demand. For now, the market is entering a steadier phase—except in NCR, where the momentum shows no signs of slowing.
