India's Rental Market Shows Signs of Stabilization Amid Increased Supply
India's hottest rental markets are no longer rising at the same pace
Business Standard
Image: Business Standard
India's rental housing market is cooling as new supply outpaces demand, according to the Magicbricks Rental Index Report. Average rents increased by 14% annually, but cities like Gurugram and Mumbai are experiencing slower growth. Bengaluru remains strong, with an 8.6% quarterly rent increase driven by IT demand.
- 01Rental supply across India increased by 9% quarter-on-quarter and 12% year-on-year.
- 02Average rents rose by 14% annually, but growth is slowing in major markets like Gurugram and Mumbai.
- 03Bengaluru recorded a strong 8.6% quarterly increase in rents, supported by IT sector demand.
- 04The Rs 10,000–20,000 rental segment holds a 36% share of national demand.
- 05Chennai and Kolkata reported strong rental yields of 4.87% and 4.81%, respectively.
Advertisement
In-Article Ad
India's rental housing market is showing early signs of cooling as fresh housing supply increases, easing pressure on rents across major cities. The latest Magicbricks Rental Index Report indicates a 9% quarter-on-quarter and 12% year-on-year rise in rental supply, significantly outpacing the 0.6% increase in tenant demand. While average rents still climbed 14% annually, markets like Gurugram and Mumbai are experiencing slower rental appreciation due to new inventory entering the market. Bengaluru stands out with an 8.6% quarterly rent increase, driven by robust demand from the IT sector. The Rs 10,000–20,000 rental segment remains the most sought after, accounting for 36% of overall demand. Cities such as Bengaluru and Hyderabad continue to see strong rental momentum, while NCR and MMR markets are moderating as supply catches up with demand. The report also highlights strong rental yields in Chennai (4.87%) and Kolkata (4.81%), indicating healthy investor returns.
Advertisement
In-Article Ad
The cooling rental market may lead to more affordable housing options for tenants as supply increases and prices stabilize.
Advertisement
In-Article Ad
Reader Poll
Do you think the rental market will stabilize further in the coming months?
Connecting to poll...
Read the original article
Visit the source for the complete story.


