India’s Residential Rental Search Market Reaches Rs 7.53 Lakh Crore Demand Potential
New Delhi, September 12: India’s residential rental search market holds an estimated annual demand potential of Rs 7.53 lakh crore in 2026, according to the latest Rental Index for April–June 2026 (AMJ’26) released by Magicbricks. The report highlights the expanding scale of rental housing activity driven by digital property discovery, noting a compound annual growth rate (CAGR) of 2.4% between 2024 and 2026.
Rental demand increased 16% quarter-on-quarter (QoQ) during AMJ’26, while supply grew by 4.5% QoQ. Rental values rose 2.2% QoQ and 6.2% year-on-year (YoY) nationally, though city-level trajectories varied. Greater Noida recorded the highest quarterly demand surge at 32.5%, followed by Delhi at 30.6%, Kolkata at 27%, and Noida at 25.7%. Navi Mumbai registered an 11.1% YoY increase in rental values.
Tenant preferences showed a heavy tilt toward affordability and functional spaces. The Rs 10,000–20,000 monthly rental segment generated 35% of overall demand, while the Rs 20,000–30,000 segment captured 21%. Two-BHK units remained the most sought-after configuration at 46% of total demand, followed by 1-BHK units at 30%. Properties measuring between 500 and 1,000 square feet accounted for 46% of tenant interest.
Semi-furnished residences accounted for 55% of search preferences, reflecting a demand for move-in convenience paired with setup flexibility. However, the report noted a budget mismatch, as tenant interest remained concentrated in the Rs 10,000–30,000 range while available supply skewed toward higher price brackets.
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.”
