India’s Residential Rental Market Holds ₹7.53 Lakh Crore Demand Potential: Magicbricks Rental Index

New Delhi, September 10, 2026: India’s residential rental search market holds an estimated annual demand potential of ₹7.53 lakh crore in 2026, according to the latest Magicbricks Rental Index for April–June 2026 (AMJ’26).

The report provides insights into rental demand, supply, rental values and changing tenant preferences across key residential markets in India, highlighting the growing role of digital platforms in property discovery.

Rental Demand Rises 16% QoQ

India’s rental housing market witnessed renewed activity during the April–June 2026 quarter, with rental demand increasing 16% quarter-on-quarter (QoQ).

Rental supply also expanded by 4.5% QoQ, indicating an active market where both tenant interest and property availability continue to develop.

According to the report, tenant preferences remain strongly influenced by affordability and practical housing requirements.

₹7.53 Lakh Crore Annual Rental Demand Potential

Magicbricks estimates India’s residential rental search market at an annual demand potential of ₹7.53 lakh crore in 2026.

The market recorded a 2.4% CAGR between 2024 and 2026, reflecting the increasing role of online platforms in helping tenants discover, compare and evaluate rental properties.

₹10,000–20,000 Rental Segment Leads Demand

Affordability continues to play a major role in rental property searches.

The ₹10,000–20,000 monthly rental segment accounts for 35% of overall rental demand, making it the most preferred budget category.

This is followed by the ₹20,000–30,000 segment, which accounts for 21% of demand.

The report also identifies a demand-supply mismatch across rental budgets, with tenant searches concentrated largely within the ₹10,000–30,000 range, while available supply has a relatively stronger presence in higher rental brackets.

2 BHK Homes Remain Most Preferred

In terms of home configuration, 2 BHK properties account for 46% of rental demand, making them the most preferred housing format among tenants.

1 BHK homes account for 30% of demand, further highlighting the preference for practical and relatively compact residential formats.

Properties measuring between 500 and 1,000 sq. ft. account for 46% of rental demand, demonstrating strong tenant interest in compact-to-mid-sized homes.

Semi-Furnished Homes Account for 55% of Demand

Furnishing is another important factor influencing rental searches.

According to the Rental Index, semi-furnished homes account for 55% of tenant demand.

This preference indicates that tenants are looking for homes offering essential conveniences while retaining flexibility to personalise and arrange their living spaces according to their needs.

Greater Noida Records Highest Quarterly Rental Demand Growth

Rental markets across Indian cities displayed varied growth trends during the quarter.

Greater Noida recorded the highest quarterly increase in rental demand at 32.5%, followed by:

• Delhi: 30.6%
• Kolkata: 27%
• Noida: 25.7%

The trends highlight the growing importance of emerging urban centres and well-connected residential corridors in driving rental housing activity.

Rental Values Rise 6.2% YoY

Rental values continued to move upward nationally, registering 2.2% QoQ and 6.2% YoY growth during the quarter.

However, individual cities recorded different trajectories, highlighting variations across local residential markets.

Navi Mumbai recorded 11.1% YoY growth in rental values during the quarter.

Affordability, Space and Convenience Shape Rental Searches

Commenting on the findings, Prasun Kumar, Chief Marketing Officer, Magicbricks, said:

“India’s rental market is becoming more dynamic, with tenants increasingly evaluating homes through a combination of affordability, space, location and convenience. The latest Rental Index reflects how these factors are shaping rental searches across different markets.

As rental housing continues to evolve, data-driven insights can help tenants, landlords and other stakeholders better understand market movements and make more informed decisions.”

Key Highlights

• Annual Rental Demand Potential: ₹7.53 lakh crore in 2026
• Rental Demand Growth: 16% QoQ
• Rental Supply Growth: 4.5% QoQ
• Market CAGR: 2.4% between 2024 and 2026
• Top Rental Budget: ₹10,000–20,000 with 35% demand
• ₹20,000–30,000 Segment: 21% of demand
• Most Preferred Configuration: 2 BHK with 46% demand
• 1 BHK Demand: 30%
• Preferred Property Size: 500–1,000 sq. ft. with 46% demand
• Semi-Furnished Homes: 55% of tenant demand
• Rental Value Growth: 2.2% QoQ and 6.2% YoY
• Highest QoQ Demand Growth: Greater Noida at 32.5%
• Navi Mumbai Rental Value Growth: 11.1% YoY

About Magicbricks

Magicbricks is an Indian real estate platform connecting property buyers, sellers, landlords and tenants.

The platform records monthly traffic exceeding 2 crore and has an active base of more than 15 lakh property listings.

Beyond property discovery, Magicbricks provides services across home loans, interiors and expert advice. Its research and digital platforms also provide information on property price trends, forecasts and locality-level market developments.

The Magicbricks Rental Index AMJ’26 forms part of Magicbricks Research’s broader initiative to track rental demand and supply, budgets, home configurations, property sizes, furnishing preferences, rental values and locality-level trends across key Indian residential markets.
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