Post by : Badri Ariffin

The rental housing market in India is showing signs of moderation, but Delhi–NCR continues to stand out as a strong performer. According to Magicbricks’ Rental Index for July–September 2025, Greater Noida recorded a staggering 29.5% quarter-on-quarter jump in rental demand, followed by Delhi at 17.8% and Noida at 10.8%.

This surge contrasts with the national trend, where rental demand has slowed, rising only 0.2% quarter-on-quarter and 0.4% year-on-year. Supply is also gradually catching up, with a 0.6% quarterly increase and nearly 6% rise over the year.

Rents Keep Climbing Despite Market Cooling

Even as overall activity moderates, rental rates continue to trend upwards. Nationwide, average rents grew 4.4% quarter-on-quarter and 18.1% compared to last year, reflecting continued demand for well-connected, mid-sized homes.

Among major cities, Thane led with a 12.5% QoQ rent increase, followed by Chennai (+6.7%), Mumbai (+4.9%), and Delhi (+4.5%). In NCR, rising tenant inflows are matched by a robust 17.6% jump in available supply, the highest among all major markets, ensuring options for renters.

Tenant Preferences Drive Mid-Sized, Semi-Furnished Homes

Across India, tenants remain consistent in their choices. 2BHK units accounted for 44% of demand, while 1BHKs made up 32%. Semi-furnished homes dominate, with 51% of demand and 54% of supply, and properties between 500–1,500 sq. ft. capture 77% of tenant interest.

These preferences align closely with the NCR market, particularly in Greater Noida and Noida Extension, where mid-income housing projects are driving both demand and supply.

The data points to a rental market that is returning to balance, where the rush of previous quarters is settling, but cities with strong infrastructure and connectivity, like those in NCR, continue to attract tenants at a healthy pace.

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