NEW DELHI: According to the Magicbricks Rental Index, average residential rents in India rose by 14% year-on-year and 2% quarter-on-quarter in the January-March 2026 period.
During this period, rental demand increased by 0.6% quarter-on-quarter, while the supply grew by 9% sequentially and 12% year-on-year, spurred by the completion and handover of new projects in developing areas.
The report indicates that the market is approaching a more balanced state, with new supply moderating rental increases in key cities.
The ₹10,000-20,000 monthly rental bracket constituted 36% of total demand, followed by the ₹20,000-30,000 range at 22%. Among residential configurations, 2BHK units continued to be the most popular, making up 45% of rental demand.
Semi-furnished apartments maintained strong demand and supply throughout the quarter.
Bengaluru led major cities in rental growth, with a 5.2% increase in demand and rents rising by 8.6% quarter-on-quarter, fueled by activity in IT-driven areas.
Hyderabad also experienced rental growth, with a 15% year-on-year rise in rents, supported by job-driven demand and infrastructure advancements.
On the other hand, certain NCR and MMR markets exhibited weaker rental trends as supply growth outpaced demand. Gurugram saw a 10.4% quarter-on-quarter increase in supply, while rents dipped by 1.1%. In Mumbai, supply rose by 11% sequentially, but demand fell by 1.8%.
Mumbai remains the costliest rental market in the country, while Greater Noida, Ahmedabad, and Noida are among the more affordable options.
Peripheral corridors became significant supply centers this quarter, with notable inventory additions in Gurugram along Southern Peripheral Road, Dwarka Expressway, and New Gurugram. In the MMR, areas like Taloja, Kharghar, Mira-Bhayandar, and Panvel saw supply growth.
In Bengaluru and Hyderabad, new supply was noted in emerging locations such as Sarjapur Road, Thanisandra, Medchal Highway, and Miyapur.
The report also highlighted rental yields of 4.87% in Chennai, 4.81% in Kolkata, 4.19% in Bengaluru, and 4.06% in Hyderabad.
