Magicbricks Rental Index highlights growing preference for practical homes in the ₹10,000–₹30,000 monthly rental range

Mumbai: 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 Magicbricks Rental Index. Rental values also increased by 2.2% QoQ during the quarter, reflecting continued activity across the Indian rental market.

A key trend emerging from the Magicbricks Rental Index is the continued preference for affordable rental homes. Properties priced between ₹10,000 and ₹20,000 per month accounted for 35% of overall rental demand, making it the largest rental demand segment. This was followed by the ₹20,000–₹30,000 monthly rental 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 tenants’ 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 among rental home seekers.

The trend was visible across several major Indian 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 hubs and residential markets.

Beyond rental prices and home 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 preference highlights the growing demand for ready-to-use rental homes that combine functionality with affordability.

The latest findings from the Magicbricks Rental Index 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. The strong demand for 2 BHK rental homes, particularly within the ₹10,000–₹30,000 monthly rental range, underscores the importance of affordable and functional housing options for tenants.

For landlords and developers, understanding these rental market trends could play a key role in aligning rental inventory with evolving tenant expectations. As rental demand continues to grow across major cities, tracking tenant preferences, rental values, housing configurations and furnishing requirements can help market participants better understand changing dynamics in India’s residential rental market.