India's residential rental market is experiencing a significant revival with rental demand rising 16% quarter-on-quarter (QoQ) in April-June 2026, according to Magicbricks' latest Rental Index. The market has expanded at a 2.4% CAGR between 2024 and 2026, with the residential rental search market representing an annual demand potential of ₹7.53 lakh crore in 2026. As reported by Magicbricks, this growth reflects the increasing role of digital platforms in rental home discovery, with tenants increasingly evaluating homes through a combination of affordability, space, location, and convenience. The market witnessed renewed activity during the quarter, with rental demand increasing 16% QoQ while supply also expanded by 4.5% QoQ, indicating an active market where both tenant interest and availability are continuing to develop.
Tenant preferences continue to favor homes that offer a balance between cost and liveability, with the ₹10,000–20,000 segment accounting for 35% of rental demand, followed by the ₹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%. According to the report, compact-to-mid-sized homes are gaining preference, with properties measuring 500–1,000 sq. ft. accounting for 46% of rental demand. Furnishing preferences show semi-furnished homes accounting 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 ₹10,000–30,000 range while supply has a relatively stronger presence in higher rental brackets.
Rental markets across cities displayed varied trajectories with Greater Noida recording the highest quarterly growth in rental demand at 32.5%, followed by Delhi at 30.6%, Kolkata at 27%, and Noida at 25.7%. As reported by Magicbricks, rental values continued to move upwards at the national level, registering 2.2% QoQ and 6.2% YoY growth. However, city-level movements remained diverse, with Navi Mumbai recording 11.1% YoY growth in rental values during the quarter. This reflects the growing importance of emerging urban centres and well-connected residential corridors in shaping rental activity. The report highlights how these factors are shaping rental searches across different markets, with the market becoming more dynamic as tenants increasingly evaluate homes through a combination of affordability, space, location, and convenience.
According to Magicbricks Chief Marketing Officer Prasun Kumar, 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 about rental property investments. The report estimates India's residential rental search market at an annual demand potential of ₹7.53 lakh crore in 2026, highlighting the scale of rental housing activity being driven through digital property discovery. The market has grown at a 2.4% compound annual growth rate (CAGR) between 2024 and 2026, reflecting the increasing role of online platforms in helping tenants explore and evaluate rental options.
