Rental housing stabilises in Q3 2025 as demand-supply moderates: Report
- IBEF
- November 20, 2025
Top Indian cities experienced a period of consolidation in the rental housing market during July to August 2025, with demand and supply showing mild moderation that pointed to greater market stability, according to a report by Magicbricks. National rental housing demand increased by 0.2% QoQ and 0.4% YoY, while supply rose by 0.6% QoQ and 5.9% YoY. Chief Marketing Officer, Magicbricks, Mr. Prasun Kumar, said the easing trend in rents across several cities reflected improved balance as supply gradually aligned with demand, enhancing affordability for tenants and providing a more predictable landscape for homeowners and investors. Although the market is stabilising after three quarters of strong activity, average rents continued to rise by 4.4% QoQ and 18.1% YoY, with metro cities witnessing varied tenant activity.
Delhi Non-Capital Region (NCR) led demand growth, with Greater Noida rising 29.5% QoQ, Delhi 17.8% and Noida 10.8%. In comparison, Kolkata reported a 5.4% increase QoQ. He noted that the sustained momentum in NCR was supported by ongoing infrastructure upgrades, improved connectivity, and a steady supply of mid-sized homes. In contrast, Chennai, Bengaluru, Hyderabad, Pune, and Mumbai recorded softer trends with demand declining between 1.2% and 7.2% QoQ. Supply saw the strongest rise in Delhi at 17.6% QoQ, followed by Ahmedabad at 6.5%. Thane registered the steepest rise in average rent at 12.5% QoQ, with Chennai at 6.7%, Mumbai at 4.9% and Delhi at 4.5%. Nationally, two-bedroom homes accounted for 44% of rental demand, followed by one-bedroom units at 32%. Semi-furnished homes continued to dominate with 51% of demand and 54% of supply. In comparison, mid-sized units of 500 to 1,500 square feet comprised 77% of tenant preference.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
