Greater Noida Tops Rental Demand With 29.5% QoQ Rise; Delhi, Noida Stay Strong

India’s rental market showed signs of cooling in the July–September 2025 quarter, even as the Delhi–NCR region continued to power ahead with some of the strongest demand spikes in the country, according to Magicbricks’ latest Rental Index.

After three consecutive quarters of rapid escalation, the market is beginning to settle into a more measured pace, though rents themselves remain on an upward trajectory.

Magicbricks’ JAS ’25 report shows that average rents rose 4.4 per cent quarter-on-quarter and 18.1 per cent year-on-year, even as tenant activity and new listings moved toward a more balanced rhythm. Between July and August, the market entered a consolidation phase, with both demand and supply moderating after a long period of heightened churn.

National rental demand inched up 0.2 per cent QoQ and 0.4 per cent YoY, while supply grew 0.6 per cent QoQ and 5.9 per cent YoY, signalling better alignment between tenant needs and landlord offerings.

Delhi–NCR exerted the strongest influence on quarterly trends, remaining exceptionally vibrant. Demand surged 29.5 per cent  QoQ in Greater Noida, 17.8 per cent in Delhi, and 10.8 per cent in Noida. Kolkata also posted a healthy 5.4 per cent QoQ rise.

Commenting on this, Robin Mangla, President, M3M India, said, “The rental market is stabilising, but the NCR continues to post strong demand fundamentals, supported by improving connectivity and sustained residential development. Greater Noida, Delhi, and Noida are benefitting from ongoing infrastructure upgrades that are widening the tenant base and supporting consistent absorption.”

A notable shift is the rising demand for luxury rentals in Noida, where the supply of genuine high-end housing remains limited. “This supply gap is keeping the segment strong and reinforcing the need for high-quality, well-planned residential offerings in prime locations. For developers, the opportunity lies in creating projects that address evolving lifestyle expectations while sustaining long-term tenant confidence,” he added.

In contrast, several major metros — including Chennai, Bengaluru, Hyderabad, Pune and Mumbai — experienced softer shifts, with demand dipping between –1.2 per cent and –7.2 per cent QoQ.

Supply trends also pointed to a healthier balance: Delhi saw the highest increase at 17.6 per cent QoQ, followed by Ahmedabad at 6.5 per cent.

Rents, however, continued climbing across most markets. Thane led with a sharp 12.5 per cent QoQ rise, followed by Chennai (6.7 per cent QoQ), Mumbai (4.9 per cent QoQ) and Delhi (4.5 per cent QoQ), reflecting steady absorption.

“While the national rental market has begun to stabilise after several quarters of rapid growth, the continued momentum in NCR shows how infrastructure upgrades, better connectivity and a steady flow of mid-sized homes are sustaining tenant interest,” said Prasun Kumar, CMO, Magicbricks.

“The moderation in rents across most cities also indicates a healthy shift toward balance, where supply is catching up with demand. This phase is likely to improve affordability for tenants while creating a more predictable environment for homeowners and investors,” he added.

Tenant preferences remained largely unchanged at the national level. Two-bedroom units accounted for 44 per cent of total demand, followed by one-bedroom homes at 32 per cent. Semi-furnished properties dominated both demand (51 per cent) and supply (54 per cent). Mid-sized homes ranging from 500 to 1,500 sq. ft. continued to form the backbone of rental activity, commanding 77 per cent of tenant interest.