India’s rental housing market moved into a more balanced growth phase in the January–March 2026 quarter, with fresh supply across peripheral corridors moderating rental appreciation in key cities, according to the Magicbricks Rental Index Report.

Rental demand rose marginally by 0.6 per cent QoQ, while supply increased 9 per cent QoQ and 12 per cent YoY, supported by new project completions and residential handovers in emerging micro-markets. Average rents across India grew 2 per cent QoQ and 14 per cent YoY during the quarter.

The Rs 10,000–20,000 rental segment led national demand with a 36 per cent share, followed by the Rs 20,000–30,000 segment at 22 per cent. Two-bedroom homes remained the most preferred configuration, accounting for 45 per cent of tenant demand, while semi-furnished homes dominated both demand and supply.

Bengaluru was the strongest-performing rental market, with demand rising 5.2 per cent QoQ and rents increasing 8.6 per cent QoQ, driven by activity across IT corridors. Hyderabad also recorded healthy growth, with rents up 15 per cent YoY, supported by employment growth and infrastructure expansion.

However, NCR and MMR markets saw softer rental momentum as supply outpaced incremental demand. Gurugram recorded a 10.4 per cent QoQ rise in supply, while rents declined 1.1 per cent QoQ. Mumbai saw supply rise 11 per cent QoQ even as demand moderated by 1.8 per cent QoQ.

Mumbai remained India’s most expensive rental market, while Greater Noida, Ahmedabad and Noida were among the most affordable destinations. Peripheral locations such as Southern Peripheral Road, Dwarka Expressway, New Gurgaon, Taloja, Kharghar, Panvel, Sarjapur Road, Thanisandra, Medchal Highway and Miyapur emerged as major supply growth hubs.

The report also highlighted strong rental yields in Chennai at 4.87 per cent, Kolkata at 4.81 per cent, Bengaluru at 4.19 per cent and Hyderabad at 4.06 per cent, indicating sustained tenant demand and healthy investor returns.