Indian rents on the rise; 16% Y-o-Y in March quarter
ECONOMY & POLICY

Indian rents on the rise; 16% Y-o-Y in March quarter

Rental prices in major Indian cities are experiencing a significant upswing, with a 16% year-on-year increase reported in the March quarter by Magicbricks. This surge is particularly notable in tech hubs like Greater Noida with a 32.1% increase, Gurugram with 24.5%, and Bengaluru with 23.7%.

While demand for rental accommodation remains strong, particularly in the Rs 10,000 to Rs 30,000 per month range (42% of total demand), the supply of rental units is only growing marginally with 1.8% Q-o-Q. This mismatch between supply and demand is a key driver behind the rent increase.

The rise in rents reflects a changing real estate landscape. Factors like the return to office work and evolving tenant preferences are influencing the market.

Abhishek Bhadra, Head of Research, Magicbricks, explained the driving factors behind the surge in rents. "Prior to 2020, residential rental yields in India were averaging around 3%. However, since 2022, following the resumption of office operations, we've witnessed a notable surge in rental demand, consequently driving up rents and offering higher yields to landlords." He added, "We anticipate this upward trend in rents to persist over the next few months, particularly as rental activity typically peaks in the first two quarters of the fiscal year. Notably, residential and IT hubs like Bengaluru, Gurugram, Hyderabad, and Noida have experienced significant increases in their rental yields, in line with our expectations."

As rents climb, both landlords and tenants will need to adjust to the new market dynamics. Stakeholders, including policymakers and developers, need to collaborate on solutions that ensure the availability of affordable rental housing options and a balanced approach to rental policies and real estate development.

(Source: Economic Times)

Rental prices in major Indian cities are experiencing a significant upswing, with a 16% year-on-year increase reported in the March quarter by Magicbricks. This surge is particularly notable in tech hubs like Greater Noida with a 32.1% increase, Gurugram with 24.5%, and Bengaluru with 23.7%. While demand for rental accommodation remains strong, particularly in the Rs 10,000 to Rs 30,000 per month range (42% of total demand), the supply of rental units is only growing marginally with 1.8% Q-o-Q. This mismatch between supply and demand is a key driver behind the rent increase. The rise in rents reflects a changing real estate landscape. Factors like the return to office work and evolving tenant preferences are influencing the market. Abhishek Bhadra, Head of Research, Magicbricks, explained the driving factors behind the surge in rents. Prior to 2020, residential rental yields in India were averaging around 3%. However, since 2022, following the resumption of office operations, we've witnessed a notable surge in rental demand, consequently driving up rents and offering higher yields to landlords. He added, We anticipate this upward trend in rents to persist over the next few months, particularly as rental activity typically peaks in the first two quarters of the fiscal year. Notably, residential and IT hubs like Bengaluru, Gurugram, Hyderabad, and Noida have experienced significant increases in their rental yields, in line with our expectations. As rents climb, both landlords and tenants will need to adjust to the new market dynamics. Stakeholders, including policymakers and developers, need to collaborate on solutions that ensure the availability of affordable rental housing options and a balanced approach to rental policies and real estate development. (Source: Economic Times)

Next Story
Infrastructure Transport

Three Firms Shortlisted for Rs 332 Million Delhi Metro Contract

Three firms have qualified for the electrification contract D2E-12 of Delhi Metro Phase 4’s Line 10 and Line 5 extension. Line 10 spans 23.622 km, connecting Aerocity and Tughlakabad with 15 stations, while the Line 5 extension covers 12.58 km between Inderlok and Indraprastha with 10 stations.In June 2025, the Delhi Metro Rail Corporation (DMRC) invited bids for this contract. The technical bids were opened on 4 August 2025, with four firms submitting proposals. During the evaluation, one firm’s bid was rejected.The three qualified firms are:M/s A.K. Infra ProjectsM/s Kalpataru Projects I..

Next Story
Infrastructure Transport

L&T Seeks to Sell Hyderabad Metro Stake Amid Financial Losses

Infrastructure major Larsen & Toubro Limited (L&T) has expressed its intention to sell its stake, exceeding 90 per cent, in the L&T Hyderabad Metro Rail project to either the state or central government through a new Special Purpose Vehicle (SPV), citing operational and accumulated losses.In a letter addressed to the Ministry of Housing and Urban Affairs (MoHUA), L&T Metro Rail stated that despite repeated follow-ups, the Telangana government has not provided the expected financial assistance. The delay is worsening the financial distress of the concessionaire, making the situa..

Next Story
Infrastructure Transport

Ixigo Launches Delhi Metro Ticketing on Its Trains App

Online travel aggregator (OTA) ixigo has partnered with the Delhi Metro Rail Corporation (DMRC) and the Open Network for Digital Commerce (ONDC) to launch Delhi Metro ticketing on the ixigo Trains app on 12 September.As part of the collaboration, ixigo Trains now offers QR-based metro tickets with in-app payments. Users can plan and book end-to-end journeys across trains, buses, flights, hotels and now metro services on a single platform.The DMRC operates nearly 400 km of network across more than a dozen lines, making it India’s largest and busiest metro system. In August 2025, it recorded i..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?