Mumbai: Magicbricks, India’s leading real estate platform, in its latest Rent Index report, has observed another sharp surge in home rents across major metros, with an average increase of 10% over the past three months. The report highlights that Bengaluru (15.7%) and Pune (12.5%) recorded the steepest quarterly rental hikes, while rental growth in Noida (7.9%), Greater Noida (3.2%), and Gurugram (4.1%) moderated early signs of demand stabilization.
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Cities
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Average rent for 1000 sq ft (Q1' 2025)
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Average rent for 1000 sq ft (Q4' 2024)
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Ahmedabad
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21807
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19798
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Bengaluru
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36772
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31787
|
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Chennai
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31042
|
29375
|
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Delhi
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43216
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40265
|
|
Greater Noida
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19234
|
18642
|
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Gurugram
|
34909
|
33523
|
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Hyderabad
|
26825
|
25582
|
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Kolkata
|
25227
|
22877
|
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Mumbai
|
98431
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89313
|
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Navi Mumbai
|
38528
|
34797
|
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Noida
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23829
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22089
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Pune
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31439
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27951
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Thane
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38121
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34453
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The report attributes the moderation in NCR markets to a slowdown in rental demand. In Noida, rental demand declined by 3.3%, while Greater Noida recorded a 13.3% drop over the last quarter, coinciding with a significant rental rise over the previous year.
A deeper analysis of tenant preferences revealed distinct trends across cities. In premium rental markets like Mumbai (43% of rental demand), Gurugram (37%), and Bengaluru (26%), the demand was concentrated in the INR 50,000–1,00,000 per month budget bracket. Meanwhile, metros such as Ahmedabad (49%), Pune (38%), and Navi Mumbai (32%) saw demand largely dominated by a more affordable INR 20,000–30,000 per month range. In Greater Noida, despite increasing rents, affordability remained a key driver, with 86% of the rental demand focused on properties priced between INR 10,000–20,000 per month.
Significantly, the Rent Index report also highlights a steady improvement in gross rental yields across most cities, making rental investments more attractive. Ahmedabad emerged as the leader, with gross rental yield rising from 3.6% in Q1 2024 to 4.2% in Q1 2025. Similar upward trends were observed in Bengaluru (from 3.6% to 3.8%), Hyderabad (from 3.4% to 3.7%), and Mumbai (from 3.8% to 3.9%) over the same period.