India’s residential rental market is seeing a sharp revival in tenant activity, with rental demand rising 16% quarter-on-quarter (QoQ) in April-June 2026, even as rental supply increased at a much slower pace of 4.5% QoQ, according to Magicbricks’ latest Rental Index.
The report estimates that India’s residential rental search market represents an annual demand potential of ₹7.53 lakh crore in 2026. The market has expanded at a 2.4% CAGR between 2024 and 2026, highlighting the growing role of digital platforms in rental home discovery.
Tenant preferences continue to point towards homes that offer a balance between cost and liveability. The Rs 10,000–20,000 segment accounts for 35% of rental demand, followed by the Rs 20,000–30,000 segment at 21%.
In terms of configuration, 2 BHK homes remain the most preferred, accounting for 46% of demand, followed by 1 BHK homes at 30%. Compact-to-mid-sized homes are also gaining preference, with properties measuring 500–1,000 sq. ft. accounting for 46% of rental demand.
Furnishing is another important consideration in the rental search journey. Semi-furnished homes account for 55% of tenant demand, indicating a preference for homes that offer essential conveniences while still allowing tenants flexibility in setting up their living spaces.
At the same time, the report highlights a demand-supply mismatch across rental budgets, with tenant searches concentrated in the Rs 10,000–30,000 range while supply has a relatively stronger presence in higher rental brackets.
Rental markets across cities, meanwhile, continued to display varied trajectories. Greater Noida recorded the highest quarterly growth in rental demand at 32.5%, followed by Delhi at 30.6%, Kolkata at 27% and Noida at 25.7%.
Rental values also continued to move upwards at the national level, registering 2.2% QoQ and 6.2% YoY growth. However, city-level movements remained diverse.
Navi Mumbai, for instance, recorded 11.1% YoY growth in rental values during the quarter.
“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,” said Prasun Kumar, Chief Marketing Officer, Magicbricks.
