Mumbai: India’s residential rental market is estimated to represent an annual demand potential of INR 7.53 lakh crore in 2026, as tenant searches and rental housing activity continue to evolve across the country. According to Magicbricks’ Rental Index for April–June 2026 (AMJ’26), rental demand increased 16% QoQ, while supply grew 4.5% QoQ, indicating rising activity on both sides of the market.
The report examines rental demand, available supply, budgets, preferred home configurations, furnishing choices and rental value movements across key residential markets. Its findings point to a market in which affordability and practical housing requirements remain central to tenant decisions, even as digital platforms play a growing role in property discovery.
The estimated INR 7.53 lakh crore annual demand potential reflects the scale of India’s residential rental search market. Between 2024 and 2026, the market grew at a compound annual growth rate (CAGR) of 2.4%, highlighting the increasing role of online property platforms in helping tenants identify and compare rental homes.
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Affordable Rental Budgets and 2 BHK Homes Lead Tenant Preferences
Rental searches remain concentrated in the lower and middle budget segments. Homes priced between INR 10,000 and INR 20,000 account for 35% of rental demand, while the INR 20,000–30,000 category represents another 21%. These figures underline the importance of affordability in shaping tenant choices.
In terms of property configuration, 2 BHK homes remain the most sought-after option, accounting for 46% of demand. One-bedroom apartments follow with a 30% share. Property size preferences show a similar emphasis on compact and mid-sized housing, with homes measuring 500–1,000 sq. ft. accounting for 46% of rental demand.
Furnishing also influences the rental search process. Semi-furnished properties account for 55% of tenant demand, suggesting that renters often prefer homes equipped with essential amenities while retaining flexibility to personalise their living spaces.
However, the report identifies a mismatch between rental demand and available supply across budget categories. Tenant searches are concentrated in the INR 10,000–30,000 range, whereas available properties have a relatively stronger presence in higher rental brackets. This divergence highlights a gap between the price ranges tenants seek and the homes available in the market.
Greater Noida Leads Quarterly Growth in Rental Demand
Rental demand growth varied across cities during April–June 2026, with Greater Noida recording the highest quarterly increase at 32.5%. Delhi followed at 30.6%, while Kolkata registered 27% growth and Noida recorded 25.7%.
The figures reflect differing rental market trajectories across urban centres and residential corridors. They also highlight the role of individual city markets in shaping national rental activity, rather than a uniform pattern of growth across locations.
Rental values continued to rise nationally, increasing 2.2% QoQ and 6.2% YoY during the quarter. City-level trends, however, varied, making local market conditions important when assessing rental price movements. Navi Mumbai, for example, recorded 11.1% YoY growth in rental values during the period.
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Magicbricks Highlights Changing Rental Market Dynamics
Commenting on the findings, 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.”
The Magicbricks Rental Index AMJ’26 brings together data on rental demand and supply, budget preferences, home configurations, property sizes, furnishing choices, rental values and locality-level trends across key Indian markets.
The report forms part of Magicbricks Research’s wider effort to track changes in real estate market behaviour through data-led analysis. Its findings offer a snapshot of rental housing preferences and pricing trends at a time when affordability, available inventory and digital property discovery remain important considerations for tenants and landlords.
