India’s rental housing market entered a more balanced growth phase during the January–March 2026 quarter, as fresh supply additions across peripheral corridors moderated the pace of rental appreciation across several key markets, according to the latest Magicbricks Rental Index Report.

The report highlights that rental demand across India increased marginally by 0.6% QoQ during JFM’26, while rental supply expanded significantly by 9% QoQ and 12% YoY, driven by new project completions and residential handovers across emerging micro-markets. Average rents across India increased by 2% QoQ and 14% YoY during the quarter.

Commenting on the findings, Prasun Kumar, CMO, Magicbricks, said, “India’s rental market is transitioning towards a more stable and balanced phase after a prolonged period of demand-led growth. While tenant activity remains healthy, fresh supply additions across peripheral and infrastructure-led corridors are increasingly shaping rental growth trends. Cities such as Bengaluru and Hyderabad continue to witness strong rental momentum backed by employment growth and sustained absorption, while NCR and MMR markets are seeing moderation in rental appreciation as supply catches up with demand.”

The INR 10,000–20,000 rental segment continued to dominate demand nationally with a 36% share, followed by INR 20,000–30,000 at 22%. 2 BHK homes remained the most preferred configuration among tenants, accounting for 45% of overall demand, while semi-furnished homes dominated both demand and supply.

Among major cities, Bengaluru emerged as the strongest-performing rental market during the quarter, recording a 5.2% QoQ increase in demand and an 8.6% QoQ rise in rents, supported by strong activity across key IT corridors.

Hyderabad also witnessed healthy growth, with rents increasing 15% YoY, backed by sustained employment growth and infrastructure expansion.

In contrast, several NCR and MMR markets witnessed softer rental momentum as inventory additions outpaced incremental demand. Gurugram recorded a 10.4% QoQ increase in supply while rents declined by 1.1% QoQ. Mumbai witnessed an 11% QoQ rise in supply even as demand moderated by 1.8% QoQ.

Mumbai continued to remain India’s most expensive rental market, while Greater Noida, Ahmedabad, and Noida remained among the most affordable rental destinations.

Peripheral corridors across major cities emerged as key supply growth hubs during the quarter. In Gurugram, Southern Peripheral Road, Dwarka Expressway, and New Gurgaon led fresh inventory additions, while in MMR, Taloja, Kharghar, Mira-Bhayandar, and Panvel recorded strong supply growth. Bengaluru and Hyderabad also witnessed rising supply across emerging peripheral locations such as Sarjapur Road, Thanisandra, Medchal Highway, and Miyapur.

The report further highlighted strong rental yield performance across Chennai (4.87%), Kolkata (4.81%), Bengaluru (4.19%), and Hyderabad (4.06%), indicating healthy investor returns and sustained tenant demand.