India’s rental housing market is witnessing a clear geographic shift, with peripheral corridors across major metros emerging as the new engines of rental growth, according to the latest Magicbricks Rental Index (Jan–Mar 2026).

During the quarter, rental supply across the country rose by 9% quarter-on-quarter (QoQ) and 12% year-on-year (YoY), while demand moderated marginally to 0.6% QoQ. Despite this, rentals continued their upward trajectory, increasing by 2% QoQ and 14% YoY, indicating steady absorption across expanding urban geographies. The most notable trend, however, remains the accelerating dominance of peripheral corridors in driving market activity.

In Gurugram, peripheral micro-markets have emerged as key growth centres, significantly outpacing core areas in supply addition. The Southern Peripheral Road recorded a 27% QoQ increase in supply, followed by Dwarka Expressway at 21% and New Gurgaon at 13%. Overall, peripheral locations in the city registered 17% QoQ supply growth, compared to 8% in core markets, underscoring a clear shift in residential development toward emerging connectivity-led corridors.

Bengaluru continues to reinforce this peripheral-led growth pattern, with rents rising by 8.6% QoQ and supply in peripheral micro-markets increasing by 16% QoQ compared to 9% in core areas. Key growth hubs such as Sarjapur Road, Thanisandra, and Kanakapura Road are driving this expansion, supported by strong IT-led housing demand and ongoing infrastructure development that continues to push residential activity outward from the city core.

Hyderabad and the Mumbai Metropolitan Region (MMR) are also reflecting similar suburban expansion trends. In Hyderabad, peripheral locations led supply growth at 11% QoQ, with Medchal Highway and Miyapur emerging as key drivers of activity.

In MMR, affordability-led suburban corridors have gained strong traction, with Taloja recording 28% growth, followed by Kharghar at 17% and Mira-Bhayandar at 14%, highlighting increasing tenant preference for well-connected yet relatively affordable housing clusters.

Looking ahead, the report indicates that India’s rental market is increasingly expanding outward, with peripheral corridors transitioning from spillover zones into primary growth engines. Continued infrastructure development, metro connectivity expansion, and large-scale residential completions are expected to further accelerate this shift across NCR, Bengaluru, Hyderabad, and the Mumbai Metropolitan Region, firmly establishing peripheral corridors as the next phase of India’s rental housing growth story.