The Indian residential rental market is showing another increase. According to the latest Rental Index from MagicBricks, the number of people looking for rental housing increased by 16% compared to the previous quarter during April to June 2026. Meanwhile, the number of available houses for rent grew by only 4.5%, indicating growing demand that is not covered by the corresponding supply.
The report shows that the potential demand in the market related to finding rental housing in India in 2026 is about 753.7 billion rupees annually. Over the period from 2024 to 2026, this market grew at an average annual rate of 2.4%, which indicates the continuous increase in the role of online platforms in the housing search process.
Tenants prefer housing that matches their budget and provides adequate living conditions. The highest demand is observed for houses with a monthly rent of 10,000 to 20,000 rupees, accounting for 35% of the total demand. This is followed by the segment with a rent of 20,000 to 30,000 rupees, which accounts for 21% of the demand.
Regarding housing size, two-bedroom apartments (2 BHK) are the most sought after, making up 46% of the total demand. They are followed by one-bedroom apartments (1 BHK) with a share of 30%. Houses ranging from 500 to 1000 square feet are also popular, constituting 46% of the overall rental need.
When searching for rental housing, the condition of the furniture also plays an important role. According to the report, 55% of tenants prefer semi-furnished homes. Such properties are already equipped with necessary amenities, allowing tenants to supplement them with their own belongings as they wish.
The report also revealed a gap between demand and housing availability: tenants are mainly looking for houses in the price range of 10,000 to 30,000 rupees, whereas a significant portion of available housing is in more expensive categories.
Different cities showed varying rates of rental demand growth. The highest increase in the last quarter was recorded in Greater Noida, where demand rose by 32.5%. This is followed by Delhi with a growth of 30.6%, Kolkata with an increase of 27%, and Noida with a growth of 25.7%.
Rental prices are also rising across the country. In the quarter from April to June, prices increased by 2.2% compared to the previous quarter and by 6.2% compared to the same period last year, although price changes vary depending on the specific city.