New completions temper rent surge even as demand remains steady across major cities

India’s Residential Rents Rise 14% in Q1 2026 as Supply Growth Brings Balance.

India’s residential rental market recorded a 14% year-on-year increase and a 2% quarter-on-quarter rise in average rents during January–March 2026, according to the latest Rental Index by Magicbricks. While rental demand grew modestly by 0.6% sequentially, supply expanded at a much faster pace—up 9% quarter-on-quarter and 12% year-on-year—driven by project completions and handovers in peripheral and emerging micro-markets. The report indicates a gradual shift towards a more balanced rental market, with fresh supply moderating rent escalation in some cities. Homes priced between ₹10,000–20,000 per month dominated demand, and 2BHK units remained the most preferred configuration. Semi-furnished homes led both demand and supply. Among cities, Bengaluru saw the sharpest sequential rent growth, supported by IT-led demand, while Hyderabad posted strong annual gains. In contrast, parts of NCR and MMR witnessed softer rents as supply outpaced demand. Mumbai continued to be India’s most expensive rental market, while Greater Noida, Noida and Ahmedabad remained relatively affordable.