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India’s Rental Housing Market Holds ₹7.53 Lakh Crore Annual Demand Potential

Rental Demand Rises 16 Percent During April to June 2026

India’s residential rental search market is estimated to hold an annual demand potential of ₹7.53 lakh crore in 2026, according to the latest Magicbricks Rental Index. The report highlights growing tenant activity, expanding housing supply and the increasing role of digital platforms in rental property discovery.

Released for the April–June 2026 quarter, the index analyses rental demand, supply, housing preferences and rental value movements across key residential markets in India.

Rental demand increased by 16% quarter-on-quarter during the period, while available supply grew by 4.5%. The figures indicate renewed activity in the rental market, supported by strong tenant interest and gradually improving availability.

India’s residential rental search market recorded a compound annual growth rate of 2.4% between 2024 and 2026. This growth reflects the increasing use of online platforms by tenants to compare properties, evaluate locations and identify homes that meet their budgets and living requirements.

Affordable Homes Dominate Tenant Searches

Affordability continues to influence rental decisions. Properties with monthly rents between ₹10,000 and ₹20,000 accounted for 35% of total demand, making this the most preferred price segment. Homes in the ₹20,000–₹30,000 range represented another 21% of demand.

However, the report identified a mismatch between tenant demand and available supply. While searches remain concentrated in the ₹10,000–₹30,000 segment, a comparatively larger share of rental inventory is available in higher price categories.

In terms of configuration, two-bedroom homes remained the leading choice, accounting for 46% of rental demand. One-bedroom homes represented 30% of searches.

Tenants also showed a clear preference for compact and mid-sized properties. Homes measuring between 500 and 1,000 sq. ft. accounted for 46% of overall rental demand.

Semi Furnished Homes Remain the Preferred Choice

Semi-furnished homes attracted 55% of tenant demand during the quarter. Such properties offer essential fittings and conveniences while allowing occupants the flexibility to personalise their living spaces.

Tenant decisions are increasingly shaped by a combination of monthly rent, property size, location, connectivity and furnishing. This trend indicates that renters are evaluating the overall practicality of a home instead of relying on price alone.

Greater Noida Leads Growth in Rental Demand

Rental activity varied considerably across Indian cities. Greater Noida recorded the highest quarterly increase in rental demand at 32.5%, followed by Delhi at 30.6%, Kolkata at 27% and Noida at 25.7%.

The performance of these markets reflects the growing importance of emerging urban centres and well-connected residential corridors. Access to employment hubs, transport infrastructure and comparatively affordable housing continues to influence rental searches.

Rental values increased by 2.2% quarter-on-quarter and 6.2% year-on-year at the national level. City-level performance remained varied, with Navi Mumbai recording an 11.1% year-on-year rise in rental values.

Data Supports Better Rental Decisions

Commenting on the findings, Prasun Kumar, Chief Marketing Officer, Magicbricks, said that tenants are increasingly assessing properties based on affordability, space, location and convenience.

He added that data-driven insights can help tenants, landlords and other stakeholders understand market movements and make more informed decisions as India’s rental housing sector continues to evolve.

The Magicbricks Rental Index covers rental demand and supply, preferred budgets, home configurations, property sizes, furnishing choices, rental values and locality-level trends across major Indian residential markets.