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.
|
Cities |
Average rent for 1000 sq ft (Q1′ 2025) |
Average rent for 1000 sq ft (Q4′ 2024) |
|
Ahmedabad |
21807 |
19798 |
|
Bengaluru |
36772 |
31787 |
|
Chennai |
31042 |
29375 |
|
Delhi |
43216 |
40265 |
|
Greater Noida |
19234 |
18642 |
|
Gurugram |
34909 |
33523 |
|
Hyderabad |
26825 |
25582 |
|
Kolkata |
25227 |
22877 |
|
Mumbai |
98431 |
89313 |
|
Navi Mumbai |
38528 |
34797 |
|
Noida |
23829 |
22089 |
|
Pune |
31439 |
27951 |
|
Thane |
38121 |
34453 |
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.
