Rental Demand Rises 16% QoQ as Tenants Favour Affordable, Mid-Sized
Magicbricks Rental Index highlights a growing preference for practical homes in the ₹10,000–₹30,000 monthly rental range
New Delhi, September 2026: India’s residential rental market continued to see healthy activity during April–June 2026, with rental demand rising 16% QoQ, while rental supply grew at a comparatively slower pace of 4.5% QoQ, according to the latest Rental Index by Magicbricks. Rental values also increased by 2.2% QoQ during the quarter, reflecting continued activity across the rental market.
A key trend emerging from the data is the continued preference for affordable rental homes. Properties priced between ₹10,000 and ₹20,000 accounted for 35% of overall rental demand, making it the largest demand segment. This was followed by the ₹20,000–₹30,000 bracket. On the other hand, a sizeable share of available rental inventory was concentrated in higher rental brackets, pointing to a gap between the homes tenants are actively seeking and the inventory available in the market.
The preference for practical housing is also visible in configuration choices. 2 BHK homes remained the most sought-after configuration, accounting for 46% of rental demand, as tenants continue to balance space, functionality and affordability. This demand profile indicates that homes offering adequate living space without moving into premium rental brackets continue to have wider appeal.
The trend was visible across several major rental markets. Bengaluru recorded a 13.4% QoQ increase in rental demand, while Pune saw demand rise by 20.2% QoQ. Ahmedabad and Gurugram also recorded double-digit quarterly growth in rental demand, indicating continued activity across diverse employment and residential hubs.
Beyond pricing and configuration, tenants are also showing a clear preference for homes that offer a balance between convenience and flexibility. Semi-furnished properties accounted for more than half of overall rental demand, making them the most preferred furnishing category nationally.
The latest findings suggest that India’s rental market is increasingly being shaped by tenant-led preferences, with affordability, practical configurations and ready-to-use homes emerging as important considerations. For landlords and developers, understanding these demand patterns could play a key role in aligning rental inventory with evolving tenant expectations.